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Broad-based rally unfolds
The markets witnessed a broad-based rally,
as index heavyweights joined the upward trend along with banking,
mid-cap and Old Economy stocks. Tech stocks continued to show a
mixed trend, due to negative reports on the proposed L1 visa bill
to be introduced in the US house of Representatives. Despite this,
occasional bouts of buying were seen in select frontline and second
rung tech stocks. Traders and speculators continued to build speculative
positions into banking and a few old economy stocks. FII investments
in the meanwhile continued to improve during the course of the week,
as they continued to remain net buyers. On the other hand, mutual
funds also joined the party and were marginal buyers.
The benchmark BSE Sensex moved above the
resistance levels of 3,085 and 3,115 level, which augurs well. It
is likely to fill the price gap formed between 3,174 and 3,164 level
on April 9. However, it is important that it continues to sustain
and consolidate above the 3,080 level. Intermediate bouts of correction
are likely to be witnessed and the Sensex is likely to face resistance
at the 3,207 level. On the downside, the 3,080 level would act as
an important support level for the Sensex.
CMC
The CMC stock moved in a range of Rs 60.70, touching an intra-day
high of Rs 477.70 on May 22 and an intra-day low of Rs 417 on May
27. CMC’s downslide continued as it fell below its support
level of Rs 425, but has been able to bounce back above this level.
It is likely to once again test its support level of Rs 425, if
it fails to sustain above this level, it is likely to decline to
test the Rs 395 level. On the upside, the Rs 455 level is an important
resistance level.
Digital GlobalSoft
Digital moved in a range of Rs 54.70, touching an intra-day high
of Rs 521.80 on May 22 and intra-day low of Rs 467.10 on May 27.
The Digital stock fell close to its support level of Rs 463, to
touch Rs 467.10. It has formed a minor positive divergence pattern
and a minor rally is likely to unfold, which could take it to its
resistance level of Rs 551. On the downside, the Rs 463 level is
an important support level.
Infosys Technologies
Infosys moved in a range of Rs 209, touching an intra-day high of
Rs 2,780 on May 22 and an intra-day low of Rs 2,571 on May 26. Though,
it fell below its support level of Rs 2,653 level, it was able to
bounce back above this level. It has formed a minor positive divergence
pattern and a minor rally is on the cards, which is likely to take
Infosys to test its resistance level of Rs 3,070. On the downside,
the Rs 2,653 level is an important support level, but if this level
is breached it is likely to test the Rs 2,300 level.
Satyam Computer
Satyam moved in a narrow range of Rs 11.70, touching an intra-day
high of Rs 167.35 on May 28 and an intra-day low of Rs 155.65 on
May 27. It is likely to face resistance at the Rs 171 level and
if it moves and sustains above this level it is likely to test the
Rs 194 level. On the downside, the Rs 152 level is likely to act
as a strong support level.
Wipro
Wipro moved in a narrow range of Rs 67.40, touching an intra-day
high of Rs 864.80 on May 22 and an intra-day low of Rs 797.40 on
May 26. Though, it fell below its support level of Rs 800, it was
able to bounce back above this level. It is in the process of forming
a minor positive divergence pattern, and if this pattern gets completed,
a minor rally is expected, which could take Wipro to test its resistance
level of Rs 981 level. On the downside, the Rs 800 level is likely
to act as an important support level.
View the
STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 02/06/2003
| The Nasdaq has been able to move above
the 1,500 level and has also moved above its resistance level
of 1,553, which is a positive sign and augurs well for the indice.
The rally is likely to continue with occasional bouts of intermediate
corrections. It is likely to face resistance at the 1,603 level.
On the downside, 1,480 is likely to act as a strong support
level. |
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