No let-up in bull run

Deepak Sahijwala & Sanjay R Bhatia

Bullish fervour continues on the bourses on high volumes, as traders and speculators unceasingly build long positions in index heavyweight and Old Economy stocks. However, they were also seen booking profits in steel stocks. FIIs continued to remain net buyers. But, mutual funds were marginal net buyers and were seen booking profits in Old Economy stocks.

The BSE Sensex has finally been able to move and sustain above the 4000 level, which is an extremely positive sign. If it sustains above the 4000 level for four trading days, it is likely to test the 4285 level. The markets will continue to witness intermediate bouts of correction and profit booking, but overall the sentiment continues to remain bullish. On the downside, 3740 is likely to act as an important support level.

CMC

The CMC stock continued to move in a narrow range of Rs 16.45, touching an intra-day high of Rs 447.45 on August 14 and an intra-day low of Rs 431 on August 18. It is now important that it moves above the Rs 453 level, for it to test 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 370 level.

Digital GlobalSoft

Digital moved in a range of Rs 36.15, touching an intra-day low of Rs 432.35 on August 18 and intra-day high of Rs 468.50 on August 20. It is likely to face resistance at the Rs 484 level, if it moves and sustains above this level, it is likely to test the Rs 525 level. 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 13, touching an intra-day low of Rs 162 on August 18 and an intra-day high of Rs 175 on August 20. The Rs 176 level continues to remain an important resistance level, and it is important that it moves and sustains above this level for it to test the Rs 198 level. On the downside, the Rs 153 level is likely to act as a support level.

Infosys Technologies

Infosys moved in a range of Rs 293.70, touching an intra-day low of Rs 3,405 on August 14 and an intra-day high of Rs 3,698.70 on August 20. It is likely to face resistance at the Rs 3,805 level, and if it manages to move and sustain above this level, it is likely to test the Rs 4,400 level. On the downside, the Rs 3,095 level continues to be an important support level.

NIIT

NIIT moved in an extremely narrow range of Rs 10.80, touching an intra-day low of Rs 115 on August 18 and an intra-day high of Rs 125.80 on August 20. On the upside, it is likely to face resistance at Rs 132 level. 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 16.10, touching an intra-day low of Rs 196.30 on August 14 and an intra-day high of Rs 212.40 on August 20. Incidentally, Satyam has succeeded in moving above the Rs 210 level. But now it is important that it sustains above this level for it to resume the upward trend and test the Rs 231 level. On the downside, the Rs 183 level is likely to act as an important support level.

Wipro

Wipro moved in a range of Rs 54.90, touching an intra-day low of Rs 903.10 on August 18 and an intra-day high of Rs 958 on August 20. 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.

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Nasdaq

The Nasdaq continued its upward trend during the week and has succeeded in moving above the 1745 level, which is an extremely positive sign. Now, it is important that it continues to sustain above this level for it to test the 1832 level. On the downside, the 1640 level is likely to act as a crucial support level.