Bulls dominate, despite blast setback

Deepak Sahijwala & Sanjay R Bhatia

The bourses continued to witness gains on high volumes, as traders and speculators unabatedly continued to build long positions in index heavyweight and Old Economy stocks. They have also started building positions in tech stocks, which so far have not contributed towards gains on the markets. The markets witnessed a minor blip on the news of the twin Mumbai blasts on August 25, when the Sensex fell by 120 points. However, the bull rampage continued on the street from the very next day, despite the blasts, which initially unnerved the bulls. FIIs along with mutual funds continued to remain net buyers.

The BSE Sensex is likely to test the 4285 level in a few trading sessions and it is even likely to move above this level. If it moves and sustains above this level it is likely to test the 4462 level. It is important that the Sensex consolidates at higher levels for the gains to sustain. The markets also witnessed a healthy correction during the week, due to an unfortunate incident, and further intermediate bouts of correction and profit-booking can be expected, but the overall sentiment continues to remain positively bullish. On the downside, the 4000 level is likely to act as an important support level.

CMC
The CMC stock continued to move in a narrow range of Rs 25, touching an intra-day high of Rs 447 on August 21 and an intra-day low of Rs 422 on August 25. Though, it had fallen below the Rs 422 support level, it was able to bounce back. It is now likely to test the Rs 453 level during the week. If it succeeds in moving and sustaining above this level, it is likely to test the Rs 492 level. On the downside, the Rs 428 level continues to remain 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 narrow range of Rs 43, touching an intra-day high of Rs 472 on August 21 and intra-day low of Rs 429 on August 25. On the upside, 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 high of Rs 177.10 on August 21 and an intra-day low of Rs 157.30 on August 25. It is now likely to test the Rs 176 level and if it succeeds in moving and sustaining above this level, it would test the Rs 198 level. On the downside, the Rs 153 level is an important support level.

Infosys Technologies
Infosys moved in a range of Rs 855.80, touching an intra-day high of Rs 3,873.80 on August 27 and an intra-day low of Rs 3,018 on August 25. In fact, it moved above two crucial barriers: one being the resistance level of Rs 3,805 and another being the 200-day moving average, which is an extremely positive sign. It is important that it sustains above both these levels. On the upside, 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 15.80, touching an intra-day high of Rs 136.5 on August 27 and an intra-day low of Rs 120.70 on August 22. Already, it moved above its resistance level of Rs 132 and if it manages to sustain above this level, it is likely to test the Rs 145 level. On the downside, the Rs 119 level is an important support level.

Satyam Computer
Satyam moved in a range of Rs 34.90, touching an intra-day high of Rs 219 on August 27 and an intra-day low of Rs 184.10 on August 25. Incidentally, it has continued to sustain above the Rs 210 level and the upward trend has begun. It is now likely to test the Rs 231 level, and if it moves and sustains above this level it is likely to test the
Rs 259 level. On the downside, the Rs 198 level is an important support level.

Wipro
Wipro moved in a range of Rs 169, touching an intra-day high of Rs 1,100 on August 22 and an intra-day low of Rs 931 on August 25. It is likely to test the Rs 1,021 resistance level, and if it moves and sustains above this level it is likely to test the Rs 1,300 level. On the downside, the Rs 903 level could act as an important support level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 01/09/2003

Nasdaq

The Nasdaq continued to witness an upward trend during the week, with intermediate bouts of correction. The upward move is likely to continue, albeit with corrections, and it is likely to test the 1832 level in a few trading sessions. If it manages to sustain above this level, it would test the 1930 level. On the downside, the 1640 level is likely to act as a crucial support level.