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Infosys infuses tech stocks revival
Deepak Sahijwala & Sanjay R Bhatia
The market, which otherwise had remained
extremely flat during the course of the week, resumed its upward
journey after the declaration of Infosys results. Traders and speculators
were also seen buying into pharma and tech stocks as also some PSU
stocks ahead of the CCD meeting. In the meanwhile, FII inflows remained
positive as they continued to remain net buyers on the Indian bourses.
However, mutual funds continued to remain net sellers.
The BSE Sensex took a breather during the
first half of the week and displayed extreme signs of fatigue. However,
the good numbers from Infosys due to a higher volume growth perked
sentiment and set the ball rolling for the tech sector, which otherwise
had hardly participated in the present rally. The anticipated correction
has still not materialised, as FII inflows continued to remain positive.
It is essential that a broad-based correction sets in for the markets
to move higher. On a decline the Sensex could find support at the
3,504 level, while on the upside, the 3,679 level continues to act
as a resistance level, and if this level is successfully crossed
and if Sensex manages to sustain above this level, it is likely
to test the 3,726 level.
CMC
The CMC stock moved in an extremely narrow range of Rs 23.85, touching
an intra-day low of Rs 425.10 on July 4 and an intra-day high of
Rs 448.95 on July 9. Though, it managed to move above the crucial
Rs 444 level, it failed to sustain above this level. It is now important
that it moves and sustains above the Rs 444 level for it to test
the Rs 480 level and later the Rs 547 level. On the downside, the
Rs 417 level is an important support level.
Digital GlobalSoft
Digital continued to move in a narrow range of Rs 25.20, touching
an intra-day low of Rs 412.25 on July 3 and intra-day high of Rs
437.45 on July 9. It moved in a range-bound trend. On the downside,
the Rs 393 level is a strong support level. On the upside, the Rs
527 level is likely to act as a resistance level.
Infosys Technologies
A higher guidance for FY04 and better than anticipated Q1 results
saw the Infosys stock surge on the bourses. Earlier during the week,
Infosys moved in a range of Rs 434, touching an intra-day low of
Rs 2,866 on and an intra-day high of Rs 3,300 on July 3. On the
upside, it is likely to face resistance at the Rs 3,900 level. On
the downside, the Rs 3,004 level continues to be an important support
level.
Satyam Computer
Satyam moved in a narrow range of Rs 18.35, touching an intra-day
low of Rs 178.65 on July 3 and an intra-day high of Rs 197 on July
9. It has been able to sustain above the Rs 195 level, which is
a positive sign. Now, it is important that it stays above this level
for atleast four trading days. If it sustains above this level for
12 trading days, it is certain to test the Rs 228 level. On the
downside, the Rs 170 level is likely to act as an important support
level.
Wipro
Wipro moved in a narrow range of Rs 77.40, touching an intra-day
low of Rs 870.60 on July 3 and an intra-day high of Rs 948 on July
9. It is likely to face resistance at the Rs 981 level. On the downside,
the Rs 800 level could act as an important support level.
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| The Nasdaq continued its upward journey
during the course of the week. As we had indicated in our last
issue, the Nasdaq successfully tested the 1741 level, after
it managed to sustain at the 1686 level. Now, it is important
that it sustains and consolidates at the 1741 level for it to
test the 1817 level. On the downside, the 1602 level is likely
to act as an important support level. |
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