Buying continues amidst volatility

Deepak Sahijwala & Sanjay R Bhatia

The market resumed its upward trend amidst high volumes and occasional bouts of volatility. In the meanwhile, traders and speculators were seen building further positions in Old Economy and index heavyweight stocks, but displayed cautiousness in tech stocks ahead of the ensuing Q2 results. FIIs however, continued to remain net buyers during the week. Incidentally the highest FIIs inflows were recorded on Friday and Tuesday. Moreover, mutual funds too continued buying through the week.

The BSE Sensex once again tested the 4474 level and has managed to stay above it for four trading days. It needs to stay above this level and complete a 12-day cycle, for the present upward trend to gain further strength. The only negative aspect that could affect the market sentiment would be any disappointment in Q2 results, which could take the markets down and deter the bull rally. The markets could therefore continue to witness occasional bouts of correction. The BSE Sensex is likely to face resistance at the 4763 level. On the downside, 4125 is an important support level.

CMC

The CMC stock moved in a range of Rs 59.85, touching an intra-day high of Rs 530 on October 3 and an intra-day low of Rs 470.15 on October 7. CMC again tested the Rs 525 level, but failed to sustain above that level. It is important that it consolidates at the present level and then again tries to move and sustain above the Rs 525 level for the upward trend to resume.

Digital GlobalSoft

Digital moved in a range of Rs 78.60, touching an intra-day high of Rs 585 on October 3 and intra-day low of Rs 506.40 on October 8. Profit booking at higher levels saw Digital erasing its gains, it also moved below its 200-day moving average, which does not augur well for the stock. It is likely to find support at the Rs 500 level, but if it falls below this level it is likely to fall further to test the Rs 480 level. On the upside, it is likely to face resistance at the Rs 557 level.

HCL Technologies

The HCL Tech stock moved in a narrow range of Rs 13.60, touching an intra-day high of Rs 184.70 on October 7 and an intra-day low of Rs 174.20 on October 3. HCL Tech was able to move and sustain above the Rs 178 level, which is a positive sign. If it continues to sustain above the Rs 178 level, it is likely to test the Rs 199 level. On the downside, Rs 158 is an important support level.

Infosys Technologies

Infosys moved in a range of Rs 938, touching an intra-day high of Rs 4,648 on October 3 and an intra-day low of Rs 3,710 on October 6. Infosys was unable to test the Rs 4,800 resistance level due to profit booking at higher levels. It must move above the Rs 4,800 level for the upward trend to continue. On the downside, the Rs 4,010 level is a crucial support level, if it falls below this level it is likely to test the Rs 3,560 level.

NIIT

NIIT moved in a narrow range of Rs 10.80, touching an intra-day high of Rs 154.90 on October 3 and an intra-day low of Rs 144.10 on October 8. Profit booking at higher levels has not allowed NIIT to test its resistance level of Rs 160. Now, it needs to move and sustain above Rs 160 for the upward trend to continue. On the downside, the Rs 137 level is an important support level.

Satyam Computer

Satyam moved in a range-bound trend of Rs 12.40, touching an intra-day high of Rs 263.62 on October 3 and an intra-day low of Rs 251.25 on October 8. Satyam tested the Rs 260 level, but failed to sustain above it. If it succeeds in sustaining above the Rs 160 level, it is likely to test the Rs 291 level. On the downside, the Rs 230 level is an important support level.

Wipro

Wipro moved in a range of Rs 91.70, touching an intra-day high of Rs 1,271.70 on October 7 and an intra-day low of Rs 1,180 on October 8. On the upside, it is likely to face resistance at the Rs 1,418 level. On the downside, the Rs 1,100 level could act as an important support level.

STRATSTAR FUND WIZARD Buy/Sell Report for 13/10/2003

Nasdaq

The Nasdaq has resumed its upward trend, but nervousness over Q3 results has seen Nasdaq witness intermediate bouts of profit booking. Incidentally, it succeeded in staying above the 1832 level for six days. Now, it is important that it completes the 12-day cycle for the upward trend to gain further momentum and for it to test 1930 level. On the downside, the 1760 level is likely to act as a crucial support level.