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Bulls nervous at higher levels
Deepak Sahijwala & Sanjay R Bhatia
The markets continued to witness gains,
as traders and speculators increased their speculative positions in index heavyweights,
tech and Old Economy stocks. FIIs also continued to remain net buyers on the
bourses. However, mutual funds were seen booking profits and were net sellers
during the week.
The BSE Sensex successfully tested the
3285 level, but profit booking at higher levels has seen the Sensex fall below
this level. Now, it is important that the Sensex moves and sustains above the
3285 level for four trading days, followed by a 12-day trading cycle for it
to test the 4462 level. The only sign of worry remains the falling volumes at
higher levels, indicating market sentiment is nervous at higher levels. On the
downside, the 4000 level is likely to act as an important support level.
Digital GlobalSoft
Digital moved in a range of Rs 70.55, touching
an intra-day low of Rs 462 on August 28 and intra-day high of Rs 532.55 on September
3. It was able to test the Rs 525 level, but was unable to sustain above this
level. If after testing the Rs 525 level again, it stays above this level for
four trading days, it would test the Rs 541 level. On the downside, the Rs 472
is an important support level.
HCL Technologies
The HCL Tech stock moved in a range of
Rs 30.40, touching an intra-day low of Rs 175.50 on August 28 and an intra-day
high of Rs 205.90 on September 3. The HCL Tech stock was able to test the Rs
198 level, but failed to sustain above the level. When it tests the Rs 198 level
again, it needs to sustain above the level, initially for four trading days
followed by 12 trading days, for it to rise to the Rs 219 level. On the downside,
the Rs 180 is an important support level.
Infosys Technologies
Infosys moved in a narrow range of Rs 200,
touching an intra-day high of Rs 4000 on September 1 and an intra-day low of
Rs 3,800 on September 3. It looks unlikely that Infosys would be able to sustain
above its 200-day moving average and it may also move below the important 3,805
level. Further, it has also formed a negative divergence pattern and a fall
is likely, unless it manages to hold above both crucial levels. On the upside,
the Rs 4,000 level is an important psychological level, followed by the Rs 4,400
level, which is likely to act as a resistance level. The Rs 3,805 level is a
crucial support level; if this level is breached, 3,408 is the next important
support level.
NIIT
NIIT continued to move in an extremely
narrow range of Rs 12.40, touching an intra-day low of Rs 133 on August 28 and
an intra-day high of Rs 145.40 on September 3. NIIT successfully tested the
Rs 145 level, but has failed to sustain above the Rs 145 level. If it sustains
above this level initially for four trading days followed by 12 trading days,
it is likely to test the Rs 155 level. On the downside, the Rs 119 level is
an important support level.
Satyam Computer
Satyam moved in a range of Rs 26.85, touching
an intra-day low of Rs 222 on August 28 and an intra-day high of Rs 248.85 on
September 3. Now, it is likely to test the Rs 259 level in a few trading sessions
if it continues to sustain above Rs 231 level. On the downside, the Rs 210 level
is an important support level.
Wipro
Wipro moved in a range of Rs 144.40, touching
an intra-day low of Rs 1030 on August 28 and an intra-day high of Rs 1,174.40
on September 3. It is important that it continues to sustain above the Rs 1,021
level for it to test the Rs 1300 level. On the downside the Rs 950 level could
act as an important support level.
CMC
The CMC stock moved in a range of Rs 109.10,
touching an intra-day low of Rs 357.90 on September 2 and an intra-day high
of Rs 467 on September 3. Though it tested the Rs 453 level, it was unable to
sustain above this level. It is likely to test this level again, and if it stays
above this level for four trading days, then it is likely to test the Rs 492
level. On the downside, the Rs 428 level continues to remain an important support
level.
View
the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 08/09/2003
| The bullish fervour continued on the Nasdaq during
the week. The Nasdaq successfully tested the 1832 level and has managed
to sustain above this level. It is likely to test the 1930 level and if
it continues to sustain above the 1832 level. On the downside the 1752 level
is likely to act as a crucial support level. |
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