Traders building positions ahead of Q2 results

Deepak Sahijwala & Sanjay R Bhatia

The markets continued to witness high volatility, amidst a topsy-turvy trend, ahead of the F&O trading settlement on September 25. And while traders and speculators were seen resuming their build-up in index heavyweight stocks ahead of the Q2 results, FIIs also continued to remain net buyers, albeit with low volumes. Incidentally, mutual funds were also net buyers after a long time.

The markets continued to display excessive volatility ahead of the F&O settlement. They are likely to resume their upward trend after a brief correction, which is healthy for the markets. Thereafter markets are likely to remain range-bound for a few weeks till the declaration of Q2 results. Traders and speculators are likely to start building fresh positions in anticipation of good Q2 numbers. But major fresh positions are likely to be taken by the institutions only after the Q2 results are announced early next month. And that could act as a trigger for the markets to rally and take it into a fresh bull zone. On the upside, the Sensex is likely to face resistance at the 4474 level, while on the downside, it is unlikely to fall below the 4000 level.

CMC

The CMC stock has moved in a narrow range of Rs 32, touching an intra-day low of Rs 450 on September 19 and an intra-day high of Rs 482 on September 24. It is still struggling to move above its 200-day moving average. On the upside, the Rs 492 and later the Rs 525 level are likely to act as resistance levels. On the downside, the Rs 440 level continues to remain an important support level.

Digital GlobalSoft

Digital has moved in a range of Rs 48.30, touching an intra-day low of Rs 478.70 on September 23 and intra-day high of Rs 527 on September 24. On the upside, it is likely to face resistance at the Rs 542 level, followed by the Rs 557 level. On the downside, the Rs 505 is an important support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 15.80, touching an intra-day high of Rs 170 on September 18 and an intra-day low of Rs 154.20 on September 23. Even though it moved below its 200-day moving average for a few trading sessions it has managed to move above it again, which is a positive sign. On the upside, it is likely to face resistance at the Rs 178 level. On the downside, Rs 153 is an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 360, touching an intra-day low of Rs 4,212 on September 18 and an intra-day high of Rs 4,542 on September 24. The upward trend is likely to continue and on the upside, it is likely to face resistance at the Rs 4,800 level. On the downside, the Rs 4,010 level is a crucial support level.

NIIT

NIIT has continued to move in a range of Rs 13.10, touching an intra-day high of Rs 147.40 on September 18 and an intra-day low of Rs 134.30 on September 9. On the upside, it is likely to face resistance at Rs 160. On the downside, the Rs 137 level is an important support level.

Satyam Computer

Satyam has moved in a range of Rs 22, touching an intra-day low of Rs 232.30 on September 23 and an intra-day high of Rs 254.30 on September 24. On the upside, it is likely to face resistance at Rs 260. If it manages to move and sustain above the Rs 260 level for four trading sessions, it is likely to test the Rs 290 level. On the downside, the Rs 230 level is an important support level.

Wipro

Wipro has moved in a range of Rs 105.60, touching an intra-day low of Rs 1,096.65 on September 19 and an intra-day high of Rs 1,202.25 on September 24. On the upside, it is likely to face resistance at the Rs 1,418 level. On the downside, the Rs 1,100 level is an important support level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 29/09/2003

Nasdaq

The Nasdaq has witnessed selling pressure at higher levels due to profit booking. Even though it has managed to stay above the 1832 level for 10 trading days it has failed to test the 1930 level. The Nasdaq is likely to continue to witness selling pressure, but now it is important that the Nasdaq completes the 12-day cycle above 1830 level for it to test the 1930 level. On the downside, the 1760 level is likely to act as a crucial support level.