Markets subdued, as selling pressure continues

Deepak Sahijwala & Sanjay R Bhatia

As the earnings season draws to an end, the markets have moved in an extremely range-bound manner amidst occasional bouts of volatility. While volumes continued to remain low, traders and speculators were seen unwinding their positions in Old Economy stocks due to the trucker’s strike, which continued to affect corporate revenues. FIIs incidentally were net buyers during the week, albeit on lower volumes. Mutual funds, on the other hand, continued to remain net sellers.

Technically, the benchmark BSE Sensex has remained subdued. It has continued to stay above the 2,916 level, which is a positive sign and augurs well for the markets. Stock-specific action however, would continue to be seen on the bourses. Old Economy stocks are likely to face selling pressure due to a weak monsoon forecast. Now, it is important that the benchmark BSE Sensex consolidates at present levels. On the upside, it is likely to face resistance at the psychologically important level of 3,000. If it manages to move and sustain above this level it is likely to test the 3,049 level. On the downside, the 2,916 level is likely to act as an important support level. If this level is breached it is likely to test the 2,838 level.

CMC
The CMC stock moved in a range.of Rs 47, touching an intra-day low of Rs 465 on April 17 and an intra-day high of
Rs 512 on April 21. It is likely to test the Rs 525 level in a few trading sessions. On the downside, the Rs 480 level is likely to act as an important support level.

Digital GlobalSoft
Digital moved in a range of Rs 88.80, touching an intra-day low of Rs 500.20 on April 17 and intra-day high of Rs 589 on April 21. It is likely to face resistance at Rs 543. The Rs 505 level is likely to act as an important support level.

HCL Technologies
The HCL Tech stock moved in a range of Rs 14, touching an intra-day low of Rs 136.90 on April 17 and an intra-day high of Rs 150.90 on April 23. It is likely to face resistance at the Rs 150 level. If it moves and sustains above this level it is likely to test the Rs 156 level. On the downside, the Rs 140 level is likely to act as an important support level.

Infosys Technologies
Infosys moved in a range of Rs 220, touching an intra-day low of Rs 2,820 on April 17 and an intra-day high of Rs 3,040 on April 21 post results. The Rs 3,044 level is likely to act as a resistance level. On the downside, the Rs 2,653 level is likely to act as an important support level.

NIIT
NIIT moved in a range of Rs 38.45, touching an intra-day low of Rs 93.55 on April 17 and an intra-day high of Rs 132 on April 22. On the upside, it is likely to test the Rs 142 level, if it sustains above the Rs 120 level. On the downside, the Rs 96 level is likely to act as an important support level.

Satyam Computers
Satyam moved in a range of Rs 21.20, touching an intra-day low of Rs 141.20 on April 17 and an intra-day high of
Rs 162.40 on April 23. The Rs 173 and later the Rs 180 level is likely to act as important resistance levels. On the downside, the Rs 144 level is likely to act as a support level.

Wipro
Wipro moved in a range of Rs 103.90, touching an intra-day low of Rs 832.10 on April 17 and an intra-day high of Rs 936 on April 23. On the upside, the Rs 981 level is likely to act as a resistance level. On the downside, Rs 800 is likely to act as an important support level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 28/04/2003

Nasdaq

The Nasdaq witnessed range bound fluctuations during the week. It has managed to move above the 1,426 level, which is a positive sign and augurs well for the index. If it continues to sustain above this level it is likely to test the 1,464 level. On the downside, the 1,351 level is likely to act as an important support level.