FII buying triggers bullish fervour

Deepak Sahijwala & Sanjay R Bhatia

The markets continued to witness a bullish fervour, amidst occasional bouts of corrections. Volumes continued to remain moderate, as traders and speculators remained active in index heavyweights, PSUs and Old Economy stocks. In the meanwhile, FII fund inflows rose substantially with net buying on the bourses. Incidentally the FII funds have increased dramatically during the course of this month and the same has surpassed the inflows for the month of May. However, mutual funds continued to remain net sellers on the Indian bourses.

The BSE Sensex has continued its bull run and managed to move above few crucial resistance levels. Now, it is important that it consolidates at the present levels. The only concern continues to be the declining volumes at higher levels, which indicates that the market participants are nervous about further extending their speculative positions at higher levels and may book profits at the first sign of a correction. The benchmark BSE Sensex moved above the 3539 level, if it continues to stay and sustain above this level, it is likely to test the 3679 level in the near future. On the downside, the 3336 is likely to act as a support level.

CMC
The CMC stock moved in a narrow range of Rs 24.50, touching an intra-day low of Rs 474.50 on June 19 and an intra-day high of Rs 499 on June 23. It has been struggling to move above its 200-day moving average. It must move and sustain above this level for the rally to resume and gain strength. On the upside, it is likely to face resistance at the Rs 530 level, while on the downside, the Rs 444 level is an important support level.

Digital GlobalSoft
Digital moved in a narrow range of Rs 22.95, touching an intra-day high of Rs 433 on June 19 and intra-day low of
Rs 410.05 on June 24. It is likely to face resistance at the Rs 430 level. On the downside, it is likely to test the Rs 393 level.

HCL Technologies
The HCL Tech stock moved in a range of Rs 17, touching an intra-day high of Rs 154.50 on June 19 and an intra-day low of Rs 137.50 on June 24. It is likely to face resistance at the Rs 155 level, if it succeeds in moving above the Rs 142 level. On the downside, the Rs 133 level is likely to act as a support level.

Infosys Technologies
Infosys moved in a range of Rs 243.70, touching an intra-day low of Rs 2,930 on June 20 and an intra-day high of Rs 3,173.70 on June 25. It is likely to test the Rs 3,500 level in a few trading sessions. On the downside, the Rs 3,004 level continues to be an important support level.

NIIT
NIIT moved in a range of Rs 16.70, touching an intra-day high of Rs 146.40 on June 19 and an intra-day low of Rs 129.70 on June 24. It needs to move above the 200-day moving average for it to resume the upward trend and test the Rs 144 level. On the downside, the Rs 120 level is an important support level.

Satyam Computer
Satyam moved in a range of Rs 10.50, touching an intra-day high of Rs 191 on June 19 and an intra-day low of Rs 180.50 on June 24. On the upside, the Rs 195 level is likely to act as a resistance level. On the downside, the Rs 173 level is likely to act as a support level.

Wipro
Wipro moved in a narrow range of Rs 51.65, touching an intra-day high of Rs 934.85 on June 23 and an intra-day low of Rs 883.20 on June 24. It is likely to face resistance at the Rs 905 level. On the downside, the Rs 800 level could act as an important support level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 30/06/2003

Nasdaq

The Nasdaq witnessed a corrective phase during the course of the week. It is likely to resume its uptrend once the corrective phase ends. The cut in US interest rate has had no effect on the Nasdaq, which continued to correct. It is important that the Nasdaq does not fall below the 1590 level. Any fall below this level is likely to trigger a further fall, which would take the Nasdaq to test the 1489 level. On the upside, it is likely to face resistance at the 1654 level.