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The markets seesawed amidst modest volumes during the course
of the week, struggling to stay above the 3100 level. Profit
booking that was seen at higher levels restrained the benchmark
BSE Sensex from sustaining above the crucial 3100 level. Traders
and speculators were active in tech stocks. FIIs continued
to remain net buyers, albeit on lower volumes. Mutual funds,
however, remained net sellers, neutralising the buying effect
of traders and FIIs.
Technically, it is important that the Sensex stays and sustains
itself above the 3100 level for four trading days, followed
by 12 trading days, for a bullish trend to emerge. The market
sentiment is likely to remain positive, but any fall below
the 3070 level could make it turn negative. The markets would
move in a sideways manner till the Sensex decisively crosses
the 3100 level.
CMC
The CMC stock has moved in a range of Rs 42.70 during the
course of the week, touching an intra-day low of Rs 492 on
August 22 and an intra-day high of Rs 534.70 on August 27.
Though the stock was able to move above its resistance level
of Rs 521, it was unable to stay above this level due to selling
pressure. There are quite a few resistance levels for this
stock up to the Rs 530 level, and it is important that these
levels are crossed successfully, for a strong rally to unfold.
Digital GlobalSoft
The Digital stock has moved in a narrow range of Rs 35.90
during the course of the week, touching an intra-day high
of
Rs 610.90 on August 23 and an intra-day low of Rs 575 on August
28. The stock has been moving in a sideways manner after last
week’s rally, and is likely to move in a similar manner
till it breaks out above the
Rs 611 level. Any fall below the Rs 555 level would see the
stock weakening further.
HCL Technologies
The HCL Tech stock has moved in a narrow range ofRs
20.40 during the course of the week, touching an intra-day
high of Rs 205.95 on August 27 and an intra-day low of Rs
185.55 on August 28. The stock is now facing selling pressure
at higher levels. Even though it fell below the Rs 189 level,
it was able to bounce back quickly. It now faces resistance
at the Rs 214 level and later at the Rs 223 level. On the
downside, it is important that it does not fall below the
Rs 185 level.
Infosys Technologies
The Infosys stock moved in a range of Rs 194 during the course
of the week, touching an intra-day low of Rs 3,356 on August
22 and an intra-day high of Rs
3,550 on August 27. It has been able to move above the Rs
3,544 level, after successfully crossing the Rs 3,433 level.
Profit booking at higher levels, however, eroded these gains.
The rally in the Infosys counter will continue, if it does
not fall below the Rs 3,400 level. On the upside, this counter
faces resistance at the Rs 3,550 level. If it can move above
this level, it could move close to the Rs 3,870 level.
NIIT
The
NIIT stock has moved in a narrow range of Rs 17.30 during
the course of the week, touching an intra-day high of Rs
154.65 on August 22 and an intra-day low of Rs 137.35 on August
28. The stock is likely to continue to move in a range-bound
manner for a few trading sessions.
Satyam Computers
The
Satyam stock has continued to move in a narrow range of Rs
16.75 during the course of the week, touching an intra-day
low of Rs 215.40 on August 22 and an intra-day high of Rs
232.15 on August 27. Though the stock moved in a narrow range,
volatility on the counter has increased. As we had predicted
in our last issue, the Satyam stock was able to come closer
to the Rs 235 level after it crossed the Rs 223 level. It
is likely to move above the Rs
235 level in a few trading sessions. If the stock crosses
the Rs
238 level, it is likely to move closer to the Rs 256 level.
Wipro
The
Wipro stock has moved in a range of Rs 116.40 during the course
of the week, touching an intra-day low of Rs 1,161.55 on August
28 and an intra-day high of Rs 1,277.55 on August 26. Profit
booking at higher levels has seen the stock price fall. The
stock is likely to remain range-bound as long as it stays
above the Rs 1,150 level. If it falls below this level, it
could move down further to touch the
Rs 1,060 level.
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Nasdaq
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bouts of volatility were witnessed on the Nasdaq during
the course of the week. After last week’s rally, the Nasdaq
witnessed profit booking at higher levels, which resulted
in a fall. It is important that the Nasdaq moves above
the Rs 1,350 resistance level for the rally to resume
again. |
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