Lacklustre mood prevails

Deepak Sahijwala & Sanjay R Bhatia

The markets continued to move in a narrow range-bound trend, amidst increasing volumes. Stock-specific action continued amidst volatile fluctuations. Traders and speculators were seen buying into banking, PSU and a few tech stocks, while FIIs and mutual funds continued to remain net buyers during the week.

Technically, the benchmark BSE Sensex failed to sustain and stay above the psychologically important 3,000 level, even after moving above this level twice during the course of the week. Now, it is important that it moves and sustains above this level initially for four trading days followed by 12 trading days for it to test the 3,049 level. Stock-specific action would continue to be witnessed amidst bouts of profit booking. On the downside, the 2,916 level continues to be a crucial support level. If this level is breached, it is likely to decline to test the 2,838 level.

CMC
The CMC stock moved in a range of Rs 54.65, touching an intra-day low of Rs 472.25 on May 5 and an intra-day high of Rs 526.90 on May 7. Though, it moved above the Rs 525 level, it failed to sustain above this level. The Rs 525 level continues to remain a major resistance level. If it moves and sustains above this level it is likely to test the Rs 540 level. On the downside, the Rs 480 level is likely to act as an important support level

Digital GlobalSoft
Digital moved in a range of Rs 86.25, touching an intra-day low of Rs 522.75 on May 2 and intra-day high of Rs 609 on May 7. It has moved above two crucial resistance levels, which is a positive sign, on expectations of good numbers and a possible announcement on its merger with HP India. It is likely to face resistance at the Rs 617 level, if it moves and sustains above this level it is likely to test the Rs 650 level. The Rs 526 level is likely to act as an important support level.

HCL Technologies
The HCL Tech stock moved in a narrow range of Rs 13.75, touching an intra-day low of Rs 132.25 on May 2 and an intra-day high of Rs 146 on May 6. Even though, it moved above its resistance level of Rs 145, it failed to sustain its gains. It is likely to face resistance at the Rs 145 level, if it succeeds in sustaining above this level, it is likely to test the Rs 152 level. On the downside, the Rs 134 level is likely to act as a support level.

Infosys Technologies
Infosys moved in a range of Rs 260, touching an intra-day low of Rs 2,810 on May 2 and an intra-day high of Rs 3,070 on May 6. As we had indicated in our last issue, Infosys faced resistance at the Rs 3,044 level. It is likely to test the Rs 3,404 level, if it moves and sustains above the Rs 3,044 resistance level. On the downside, the Rs 2,786 level is likely to act as an important support level.

NIIT
NIIT moved in a range of Rs 16.52, touching an intra-day low of Rs 122.50 on May 2 and an intra-day high of Rs 138.75 on May 5. It is likely to face resistance at the Rs 138 level. On the downside, the Rs 120 level is likely to act as an important support level, if it breaches this level it is likely to test the Rs 117 level.

Satyam Computer
Satyam moved in a range of Rs 20.80, touching an intra-day low of Rs 152 on May 2 and an intra-day high of Rs 172.80 on May 7. On the upside, it is likely to face resistance at the Rs 173 level, and if it moves and sustains above this level it is likely to test the Rs 194 level. On the downside, the Rs 152 level is likely to act as a strong support level.

Wipro
Wipro moved in a range of Rs 76.85, touching an intra-day low of Rs 863.15 on May 2 and an intra-day high of Rs 940 on May 7. The Rs 981 level is likely to act as a resistance level. The Rs 800 level is likely to act as an important support level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 12/05/2003

Nasdaq

The Nasdaq continued to witness gains on the back of sentiment, which has turned positive. The Nasdaq moved and sustained above the psychologically important 1,500 level, which is a positive sign. Now, it is important that it continues to sustain above the 1,500 level for at least eight more trading days to complete the 12-day cycle. If it succeeds, it is likely to test the 1,553 level. Profit booking at higher levels can be expected. On the downside, the 1,434 level is likely to act as an important support level.