Rally could resume soon

Taking a cue from the Nasdaq, the markets witnessed profit booking at higher levels as traders and speculators un wound their long positions, especially in tech stocks, which lost ground. Sentiment was further dampened on the news that Moser Baer auditors did not certify the company’s results. Incidentally, FIIs continued to remain net buyers, albeit on lower volumes along with mutual funds.

The BSE Sensex failed to move above its resistance level of 3886. Profit booking at higher levels and also the nervous sentiment prevailing in tech stocks dragged the Sensex down. The present bouts of correction are healthy for the markets and the rally is likely to resume as sentiment on the Old Economy stocks continues to remain positive. The present upward trend is likely to sustain in case the FII flows continue to remain positive, but historically FII flows decrease during the month of August. On the downside, the 3534 level is likely to act as an important support level. The benchmark Sensex is likely to again face resistance at the 3886 level.

CMC

The CMC stock moved in a range of Rs 37, touching an intra-day low of Rs 438 and an intra-day high of Rs 475 on July 31. CMC continued to move in a range-bound manner and this trend is likely to continue till it moves above the Rs 492 level. On the downside, the Rs 428 level is an important support level, and if this level is breached, it is likely to test the Rs 408 level.

Digital GlobalSoft

Digital moved in a range of Rs 121.70, touching an intra-day low of Rs 370 on August 1 and intra-day high of Rs 491.70 on August 4. Even though, it fell below its support level of Rs 419 level, it was able to bounce back above this level. It has also filled the price gap formed on June 17 and 18, which will help it to sustain a rally at higher levels. On the downside, Rs 410 is likely to act as a major support level.

HCL Technologies

The HCL Tech stock moved in a narrow range of Rs 18.90, touching an intra-day low of Rs 162 on July 31 and an intra-day high of Rs 180.90 on August 5. The HCL Tech stock did move above the Rs 176 level, but profit booking at higher levels saw the stock falling below this level. Now, if HCL Tech again moves above the Rs 176 level, it is likely to test the Rs 198 level. On the downside, the Rs 153 is likely to act as a support level.

Infosys Technologies

Infosys moved in a range of Rs 359.70, touching an intra-day high of Rs 3,845 on August 1 and an intra-day low of
Rs 3,485.30 on August 6. The successful completion of the sponsored ADS issue saw the Infosys stock buoyant on the bourses. But the increased liquidity on the US markets along with the weakness on the Nasdaq has seen the stock lose ground. On the downside, the Rs 3,095 level continues to be an important support level.

NIIT

NIIT moved in a narrow range of Rs 12.70, touching an intra-day high of Rs 132.25 on August 1 and an intra-day low of Rs 119.55 on August 6. NIIT continued to move in a range-bound trend. On the downside, the Rs 119 level is an important support level, if it falls below this level it is likely to test the Rs 96 level.

Satyam Computer

Satyam moved in a narrow range of Rs 16.15, touching an intra-day high of Rs 214.80 on August 5 and an intra-day low of Rs 198.65 on August 6. Though, Satyam moved above the Rs 211 level, it failed to sustain and consolidate at these levels and has since then lost its gains. Now, it will have to move and sustain above the Rs 210 level for the rally to resume. On the downside, the Rs 183 level is likely to act as an important support level.

Wipro

Wipro moved in a range of Rs 87.90, touching an intra-day high of Rs 1,004 on August 4 and an intra-day low of Rs 916.10 on August 6. Though Wipro moved above the Rs 981 level, it failed to sustain above this level and lost what it had gained. Wipro continues to face resistance at the Rs 981 level and later at the Rs 1,021 level. On the downside, the Rs 800 level could act as an important support level.

STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 11/08/2003

Nasdaq

Profit booking at higher levels and the dismal guidance by Cisco saw the Nasdaq lose ground during the course of the week. The weakness is likely to continue on the Nasdaq as it has failed to move and sustain above the 1741 level. On the downside, the 1602 level is likely to act as a crucial support level. On the upside, the 1741 level is likely to act as a resistance level.