Sharp rally unfolds

The much awaited and anticipated broadbased correction finally materialised during the course of the week and recovered with a roar on Thursday, July 24 with a broadbased gain of over 90 points. Traders and speculators were seen buying in old economy and index heavyweights. Incidentally, stock specific action was seen on the tech sector, which got a fresh boost after Satyam’s numbers. FIIs also continued to remain net buyers albeit, their purchases were lower than the previous week. Meanwhile, mutual funds continued to press sales on the Indian bourses.

Technically, the markets are in a corrective mode. After last week’s bits and pieces correction, the benchmark BSE Sensex did see a broadbased correction followed by a broadbased rally. And FIIs continued to bring fresh inflows, but their purchases have been selective and they too have started booking profits occasionally. Incidentally, FIIs were net sellers on two days during the course of the week. The benchmark BSE Sensex is now likely to consolidate amidst bouts of correction, before it resumes its upward journey. On the downside it is unlikely to fall below the 3500 level.

CMC

The CMC stock has moved in a range of Rs 37.40, touching an intra-day high of Rs 467.40 on July 17 and an intra-day low of Rs 430 on July 18. CMC has moved in a rangebound trend. On the downside the Rs 428 level is an important support level, while on the upside, the Rs 492 level is likely to act as a resistance level.

Digital GlobalSoft

Digital has continued to move in a broad range of Rs 53.70, touching an intra-day high of Rs 480 on July 17 and intra-day low of Rs 426.30 on July 21. On the upside the Rs.484 level is likely to act as a resistance level. If Digital can sustain above this level, it is likely to test the Rs 527 level. On the downside Rs 419 is likely to act as a major support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 17.65, touching an intra-day high of Rs 167.90 on July 17 and an intra-day low of Rs 150.25 on July 22. Now it is important that it moves and sustains above the Rs 160 level for it to test the Rs 176 level. On the downside, Rs 144 is likely to act as a support level.

Infosys Technologies

Infosys has moved in a range of Rs 353.90, touching an intra-day high of Rs 3,565 on July 17 and an intra-day low of Rs 3,211.10 on July 22. On the upside it is likely to face resistance at the Rs 3,625 level and later at the Rs 3,900 level. On the downside the Rs 3,095 level continues to be an important support level.

NIIT

NIIT has moved in a range of Rs 32.30, touching an intra-day high of Rs 152 on July 17 and an intra-day low of Rs 119.70 on July 22. The stock continues to consolidate at present levels and is likely to remain rangebound for a few trading sessions. On the upside it is likely to face resistance at Rs 139. On the downside the Rs 119 level is an important support level. If NIIT falls below this level it is likely to test the Rs 100 level.

Satyam Computers

Satyam has moved in a range of Rs 23.20, touching an intra-day high of Rs 185 on July 17 and an intra-day low of Rs 161.80 on July 22nd. On the downside the Rs 155 level is likely to act as an important support level. On the upside the Rs 194 level is likely to act as a major resistance level.

Wipro

Wipro has moved in a range of Rs 133.65, touching an intra-day high of Rs 975 on July 17 and an intra-day low of Rs 841.35 on July 18. Wipro is likely to face resistance at the Rs 981 level and later at the Rs 1021 level. On the downside, the Rs 800 level could act as an important support level.

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Nasdaq

The Nasdaq continued to consolidate amidst bouts of correction during the course of the week. Now, it is important that it moves and sustains above the 1741 level for it to continue its uptrend and test the 1817 level. On the downside, the 1602 level is likely to act as an important support level.