Markets lack triggers

Deepak Sahijwala & Sanjay R Bhatia

The markets continued to move in a narrow and range-bound trend, as sentiment continued to remain subdued, with volumes remaining low. Stock-specific action continued as occasional volatility was seen on the bourses. Traders and speculators were seen buying into banking and a few Old Economy stocks. FIIs also continued to remain net buyers during the week, albeit on lower volumes. However, mutual funds continued to remain net sellers.

Technically, the benchmark BSE Sensex continued to remain subdued. The volumes are likely to continue to remain low as the markets lack triggers for a rally to be initiated. However, stock-specific action would continue to be seen on the bourses. The only positive factor is that the Sensex has been able to bounce back above the 2,916 level. It is likely to face resistance at the psychologically important 3,000 level. 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 a crucial support level. If this level is breached it is likely to test the 2,838 level.

CMC
The CMC stock moved in a narrow range of Rs 20, touching an intra-day low of Rs 483 on April 28 and an intra-day high of Rs 503 on April 29. The stock is consolidating at present levels, but is likely to face resistance at the Rs 525 level. On the downside, the Rs 480 level is likely to act as an important support level.

Digital GlobalSoft
Digital moved in a narrow range of Rs 30.90, touching an intra-day low of Rs 519.55 on April 24 and intra-day high of
Rs 550.45 on April 24. It is likely to face resistance at the Rs 536 level and later at the Rs 543 level. 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 21.20, touching an intra-day high of Rs 157.30 on April 25 and an intra-day low of Rs 133.10 on April 30. As we had indicated in the last issue, HCL Tech stock moved above the Rs 156 level after it cleared the Rs 150 resistance level. But it failed to sustain above the Rs 156 level due to selling pressure on account of its poor results. Technically, it is likely to face resistance at the Rs 145 level. On the downside, the Rs 127 level is likely to act as an important support level.

Infosys Technologies
Infosys has moved in a range of Rs 245, touching an intra-day high of Rs 2,998 on April 24 and an intra-day low of Rs 2,753 on April 30. The Rs 3,044 level is likely to act as a resistance level, while on the downside, the Rs 2,653 level is likely to act as an important support level.

NIIT
NIIT moved in a narrow range of Rs 8.95, touching an intra-day low of Rs 93.55 on April 17 and an intra-day high of Rs 132 on April 22. It is likely to face resistance at the Rs 130 level. If it moves and sustains above this level it is likely to test the Rs 142 level. On the downside, the Rs 96 level is likely to act as an important support level.

Satyam Computer
Satyam has moved in a range of Rs 26.80, touching an intra-day low of Rs 139 on April 24 and an intra-day high of Rs 165.80 on April 24. The Rs 173 and later the Rs 180 level would continue to act as important resistance levels. On the downside, the Rs 144 level is likely to act as a strong support level.

Wipro
Wipro has moved in a range of Rs 87.90, touching an intra-day high of Rs 948.90 on April 24 and an intra-day low of Rs 861 on April 29. 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 05/05/2003

Nasdaq

The Nasdaq witnessed gains on the back of positive corporate results. It has moved above its resistance level of 1,464, which is a positive sign. If it continues to sustain above this level, it is likely to test the psychologically important level of 1,500. On the downside, the 1,434 level is likely to act as an important support level.