Markets to remain choppy

Deepak Sahijwala & Sanjay R Bhatia

The weakness on the bourses has persisted through the fortnight of the Gulf war, in between an occasional intra-day rally. However, stock-specific action was witnessed in tech and a few Old Economy stocks. Volumes, however, continued to remain lacklustre due to institutional investors staying away. Traders and speculators were seen buying into Old Economy stocks and a few index heavyweights at lower levels. FIIs were net buyers during the week, albeit their purchases remained limited. Mutual funds continued to support the markets at lower levels and remained net buyers.

The markets have displayed high levels of volatility and choppiness. They need some positive triggers for buying interest to arise and the Q4 results may set the trend. The BSE Sensex is likely to face resistance at the 3,140 level. Any adverse news on the war front or a sharp rise in crude prices might have a negative impact. The sentiment on the bourses is likely to remain nervous amidst high bouts of volatility and will continue to remain news-driven, especially as the allied forces are nearing Baghdad.

CMC
The CMC stock moved in a narrow range of Rs 24.95, touching an intra-day high of Rs 512.95 on March 28 and an intra-day low of Rs 488 on March 31. Though, it fell below its support level of Rs 489, it was able to bounce back, which is a positive sign. Now, it needs to consolidate and move above the Rs 530 level. On the downside, the Rs 488 level is likely to act as an important support level.

Digital GlobalSoft
Digital moved in a range of Rs 89.30, touching an intra-day high of Rs 661.90 on March 27 and intra-day low of Rs 572.60 on April 2. Concerns over future earnings due to the war have dragged Digital down and the weakness is likely to continue for a few trading days. The Rs 636 level is likely to act as a resistance level. On the downside, it is likely to find support at the Rs 535 level.

HCL Technologies
The HCL Tech stock has moved in a range-bound trend of Rs 17.55, touching an intra-day high of Rs 166.80 on March 28 and an intra-day low of Rs 149.25 on March 31. It is likely to face resistance at the Rs 163 level. On the downside, the Rs 144.45 level is likely to act as an important support level.

Infosys Technologies
Infosys moved in a range of Rs 296.90, touching an intra-day high of Rs 4,307.90 on March 27 and an intra-day low of
Rs 4,011 on March 31. It is likely to face resistance at the Rs 4,290 level and later at Rs 4,469. On the downside, the Rs 3,956 level is likely to act as a support level. The Q4 results on April 10 are likely to set the trend for the stock.

NIIT
NIIT moved in a range of Rs 14.50, touching an intra-day high of Rs 109.50 on March 27 and an intra-day low of Rs 95 on April 1. A minor rally is expected, which is likely to take the stock to Rs 115, where it faces resistance.On the downside, it is likely to find support at the Rs 89 level.

Satyam Computers
Satyam moved in a range of Rs 27.35, touching an intra-day high of Rs 199.75 on March 27 and an intra-day low of Rs 172.40 on April 1. It is likely to face resistance at the Rs 200 level. On the downside, it is likely to find support at the Rs 172 level. If it falls below this level it is likely to test the Rs 153 level.

Wipro
Wipro moved in a range of Rs 151.40, touching an intra-day high of Rs 1,357.75 on March 27 and an intra-day low of Rs 1,206.35 on April 1. It has formed a minor positive divergence pattern and a minor rally is likely to unfold and it could test the Rs 1,425 level in near future. On the downside, the Rs 1,200 level is likely to act as an important support level.

STRATSTAR FUND WIZARD - BUY/SELL REPORT FOR 07/04/2003

Nasdaq

A minor rally was witnessed on the US markets, but the Nasdaq is likely to face resistance at the 1,426 level. High levels of volatility will be witnessed as the war reaches its final stages. On the downside, the 1,279 level is likely to act as an important support level. Wild fluctuations should not be ruled out.