The bourses have witnessed a strong rally on the back of easing of tensions between India and Pakistan. Traders and speculators were seen actively participating and building speculative positions in index heavyweights across auto, cement, steel and a few tech stocks. FIIs were also seen buying in a few counters, but overall they were net sellers. On the other hand, mutual funds continued on a buying spree, buying into auto and steel counters, albeit in limited numbers.

Technically, sentiment on the bourses has turned positive as the benchmark BSE Sensex posted a rally of 100 points after crossing the 3270 level decisively, as we had indicated in our last issue. The present upward move is likely to continue with occasional bouts of reactions due to profit booking by traders and speculators who are likely to book profits at higher levels. The only sign of worry remains FII investments, which have reduced considerably, but are likely to pick up with the easing of Indo-Pak tensions. The benchmark BSE Sensex looks all set to cross the 3438 level.

CMC
The CMC stock moved in a range of Rs 108.40 during the course of the week, touching an intra-day high of Rs 675 on June 11 and an intra-day low of Rs 566.60 on June 12. As we had indicated, the CMC stock was unable to stay above the resistance level of Rs 672, even though it had crossed this level during an intra-day move. Disappointing Q4 results have also resulted in a sell off by bulls, who were holding on to their long speculative positions in anticipation of good quarterly results. A minor correction in the fall will be seen, and CMC could rise to a level of Rs 600-615.

Digital Globalsoft
The Digital stock moved in a range of Rs 59, touching an intra-day high of Rs 674 on June 6 and an intra-day low of Rs 615 on June 7. As we had indicated last week, the stock has been able to move above the Rs 670 level on an intra-day basis, but was unable to remain above this level. The Digital counter is likely to move in a rangebound manner before any clear-cut signs emerge.

HCL Technologies
The HCL Tech counter continued to move in a narrow range of Rs 13.90 during the course of the week, touching an intra-day high of Rs 233.90 on June 11 and an intra-day low of Rs 220 on June 12. The stock has been unable to stay above the

Rs 228.55 level, which does not augur well for it. The HCL Tech counter will continue to move in a lacklustre and rangebound manner till a decisive rally takes the stock above the Rs 228.55 level. On the downside, it could find support at the Rs 213 level.

Infosys
The Infosys stock moved in a range of Rs 310, touching an intra-day low of Rs 3,240 on June 7 and an intra-day high of

Rs 3,550 on June 11. The stock continued to move in a subdued manner due to a lack of speculative interest. The stock continues to face resistance on the upside. Initially, it will have to move above the Rs 3,531 level for a rally to take place.

NIIT
The NIIT stock continued to move in a narrow range of Rs 31.50, touching an intra-day high of Rs 272.50 on June 6 and an intra-day low of Rs 241 on June 7. The stock continues to face resistance at the Rs 274.65 level, and this level will be tested in the next few trading sessions. If it is able to move above this level successfully, then we could see it moving closer to the Rs 302 level.

Satyam Computers
The Satyam stock moved in a range of Rs 22.80 during the course of the week, touching an intra-day low of Rs 223.60 on June 7 and an intra-day high of Rs 245.65 on June 11. The stock has continued to stay above its 200-day moving average, which is a positive sign. If it crosses the Rs 245 level decisively, a sharp rally will unfold.

Wipro
The Wipro stock continued to move in a narrow range of Rs 146 during the course of the week, touching an intra-day high of Rs 1,599 on June 11 and an intra-day low of Rs 1,453 on June 7. The Wipro counter continued to move in a subdued manner due to a lack of speculative interest in frontline tech stocks. The counter needs to move above the Rs 1,640 level for any improvement to be witnessed.

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Nasdaq

The decline on the Nasdaq continued during the week, on the back of a few earnings warnings. Sentiment on Nasdaq continued to be negative as traders and speculators sold on the tech counters. The Nasdaq has fallen below its support level of 1573. The only positive sign for Nasdaq is the minor positive divergence formed by the index, which indicates a long-term bottoming out.

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