|
While
sentiment remained lacklustre, movement on the bourses remained
rangebound over the fortnight. This was initially due to the
Ayodhya imbroglio and the possible fallout at the Centre followed
by year-end considerations, which kept institutional players
and traders at bay. Volumes continued to remain moderate as
mutual funds and FIIs not only abstained from making any fresh
positions but were also selling at higher levels especially
mutual funds, who do not want to hold large outstanding positions
on their books during the year-end and instead would prefer
to show cash balances. Stock specific action was seen during
the fortnight, as traders and speculators bought into side
counters as value picks. They were also seen building speculative
positions into second rung infotech counters.
Technically, the last fortnight has seen the markets displaying
a weak trend, especially the frontline infotech stocks, which
performed badly after the earnings warning by Cisco. Presently
the benchmark BSE Sensex and Nifty are poised at crucial levels.
It is important that the benchmark BSE Sensex index does not
fall below the 3525 - 3535 level, because if this level is
breached we could see short-term weakness in the markets which
could lead to a fall of around 200 points.
CMC
The last phase of consolidation for the CMC stock has ended
and as we had indicated last fortnight, the stock has moved
in a range of Rs 61.05. The rally in the stock has taken it
closer to the Rs 405 level; it touched an intra-day high of
Rs 404.10 on March 18, and touched an intra-day low of Rs
343.05 during the course of the week. The stock should move
above the Rs 415 level in a few trading sessions.
Digital
Globalsoft
As we had indicated a fortnight back, the Digital stock continued
to display high bouts of volatility due to the impending decision
on the HP-Compaq merger which would be decided in a few weeks
time. Whatever be the outcome of this merger the stock continues
to display weakness on the daily as well as the weekly charts.
The stock has moved in a range of Rs 67.65, touching an intra-day
high of Rs 603.70 on March 18, and an intra-day low of Rs
536.05 on March 20. The stock could gain momentum in its fall,
if it falls below the intra-day low level of Rs 523.80 it
touched on February 28.
HCL
Technologies
After the brief rally, the stock has corrected itself during
the last week. It has moved in a range of Rs 13.40, touching
an intra-day high of Rs 288.40 and an intra-day low of Rs
275 on March 19. It continues to stay above its 200-day moving
average, which augurs well for the future of the stock, and
it continues to display bullish signals as we have been indicating.
The stock is all set to rise above the Rs 322 level in the
near future.
Infosys
The fortnight has seen a correction of Rs 400 in the Infosys
stock. The anticipated rally on the bourses did not materialise
and Infosys stock met with a correction. The stock has moved
in a range of Rs 194.70, touching an intra-day high of Rs
4,077.70 on March 18 and an intra-day low of Rs 3,883 on March
20. The fall in the stock could continue, but it could find
support at the Rs 3,759 level.
NIIT
Mirroring the markets, the stock has moved in a narrow range
of Rs 21.75. It continued to move in a sideways manner touching
an intra-day high of Rs 244 on March 18, and an intra-day
low of Rs 222.25 on March 20. The only factor going against
the stock is its inability to stay above its 200-day moving
average.
The stock needs to stay above its 200-day moving average initially
for four trading days followed by 12 trading days if a rally
is to be seen on this counter and if it has to touch the Rs
500 level.
Nasdaq
An
earnings warning by Cisco has dampened the sentiment on the
NASDAQ. The index has moved in a very narrow range of 32.15
points, even though the Federal Reserve has kept interest
rates unchanged and has announced that the US economy is not
in recession and is going to grow fairly. The index has also
moved below its 200-day moving average. Now it is important
that the index initially stays above the 200-day moving average
for four trading days followed by 12 days. Good quarter earnings
by companies to be announced during the course of the next
month will help the index move upwards and will act as trigger
for the markets.
Investment
website launched
A
website exclusively devoted to the world of investment, Investmentmap.com,
has just been launched. The site, is an endeavour to empower
investors to find or connect to all kinds of information relevant
to the investment world. This ranges from trader resources
including books, software, CDs to information about stock
exchanges, institutional investors, financial institutions,
mutual funds, rating agencies, publications, banks, primary
issues, investment education, online trading, technical analysis,
brokerage houses, venture funds, depositories, federations,
associations, commodities, consultants, corporate houses,
economy, government sites, insurance, legal, money markets,
personal finance, and portfolio management services, both
Indian and international.
The site intends to cater to local and international investors,
fund and portfolio managers, private investors and research
analysts. Log on to www.investmentmap.com to enter the fascinating
world of investments.
|
