Volatility to increase

Deepak Sahijwala & Sanjay R Bhatia

The markets continued to witness gains amidst high levels of volatility. Traders and speculators were seen booking partial profits in Old Economy stocks, tech and index heavyweights, while continuing to build positions on the pharma and PSU sector. Most FIIs in the meanwhile continued to pump in money and they were net buyers during the week. However, mutual funds continued to book profits and were net sellers.

The BSE Sensex tested the 4462 level, but failed to sustain above this level due to profit booking. The Sensex is once again going to test the 4462 level, and it is important that it sustains above the 4285 level for four trading days, followed by a 12 trading days cycle. Presently, the markets are showing signs of fatigue and would continue to witness intermediate bouts of correction and profit booking. The 4000 level is likely to act as an important support level.

CMC

The CMC stock moved in a range of Rs 77.70, touching an intra-day low of Rs 417.20 on September 8 and an intra-day high of Rs 494.90 on September 9. The CMC stock tested the Rs 492 level after it was able to sustain above the Rs 453 level, but profit booking has erased some gains. It is now likely to move above the 200-day moving average in a few trading sessions, which will augur well for the stock. On the upside, the Rs 492 and later the Rs 525 levels are likely to act as resistance levels. On the downside, Rs 440 continues to remain an important support level.

Digital GlobalSoft

Digital moved in a range of Rs 50.40, touching an intra-day low of Rs 514.50 on September 4 and intra-day high of
Rs 564.90 on September 9. Digital tested the Rs 541 level after it was able to sustain above the Rs 525 level, but profit booking has erased some gains. It is likely to face resistance at the Rs 557 level, followed by the Rs 600 level. On the downside, Rs 505 is an important support level.

HCL Technologies

The HCL Tech stock moved in a range of Rs 31.50, touching an intra-day low of Rs 197.20 and an intra-day high of Rs 228.70 on September 4. HCL tested the Rs 219 level after it was able to sustain above the Rs 198 level, but profit booking at higher levels has erased the gains. On the upside, it is likely to face resistance at the Rs 225 level and Rs 238 levels. On the downside, the Rs 192 figure is an important support level.

Infosys Technologies

Infosys moved in a range of Rs 675, touching an intra-day low of Rs 3,850 on September 4 and an intra-day high of Rs 4,525 on September 9. Infosys was able to test the Rs 4,400 level, after it managed to stay above two crucial levels of Rs 3,805 and also the 200-day moving average, which augurs well for the stock. Last week’s negative divergence pattern was not completed, which has allowed Infosys to post a rally. It is likely to face resistance at the Rs 4,800. On the downside, the Rs 3,805 level is a crucial support level.

NIIT

NIIT continued to move in a range of Rs 24.90, touching an intra-day low of Rs 138.60 on September 4 and an intra-day high of Rs 163.50 on September 9. NIIT tested the Rs 155 level after it was able to sustain above the Rs 145 level. On the upside, it is likely to face resistance at Rs 174. On the downside, the Rs 138.85 level is an important support level.

Satyam Computer

Satyam moved in a range of Rs 25.25, touching an intra-day high of Rs 264 on September 9 and an intra-day low of Rs 238.75 on September 10. It tested the Rs 259 level after it was able to sustain above the Rs 231 level but failed to sustain above it due to profit booking. On the upside, it is likely to face resistance at Rs 260. On the downside, the Rs 227.40 level is an important support level.

Wipro

Wipro moved in a range of Rs 211.85, touching an intra-day low of Rs 1,121.15 on September 4 and an intra-day high of Rs 1,333 on September 9. Wipro tested the Rs 1,300 level after it was able to sustain above the Rs 1,021 level. It is likely to face resistance at the Rs 1,418 level, while the Rs 1,100 level could act as an important support level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 15/09/2003

Nasdaq

After a sustained rally, the Nasdaq witnessed profit booking at higher levels. The index needed to sustain above the 1832 level to test the 1930 level, but failed due to profit booking. Now, it is important that it moves and sustains above the 1832 level for four trading days followed by 12 trading days for it to test the 1930 level. The 1760 level is likely to act as a crucial support level.