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Journalism of Courage
MUMBAI, AUG 21: Infotech counters continued their `upward movement’ with the benchmark Sensex gaining another 63 points on the Bombay Stock Exchange (BSE) following continued buying by foreign institutional investors and fresh support from operators.
Sensex resumed strong at 4383.81 and moved in a narrow range of 4426.48 and 4377.92 before closing at 4409.57 as against last Friday’s close of 4347.04, a smart gain of 62.53 or 1.44 per cent. Sensex closed above the 4,400-mark after nearly one month or 19 trading sessions when it closed at 4463.66 on August 21. “It’s still not clear whether the rally is genuine or not,” said a market source.
The upsurge in the Sensex could be gauged by a sharp to moderate rise in 22 out of 30 index-based shares which includes software shares like Satyam Computer, NIIT, Infosys Tech and Zee Tele and also old-economy scrips like BHEL, Dr Reddy, Grasim, HLL, L&T, MTNL, Nestle, SBI, TELCO and TISCO. With no adverse news from the Nasdaq Stock Market for the last couple of weeks, speculators enhanced their commitments on the back of sustained FII buying leading to widespread gains in infotech counters. “There was no good news either to warrant a big rally at this stage,” market circles said.
FIIs purchased shares of Satyam Computer, Zee Telefilms SSI Ltd, DSQ Software and others. However, Infosys Tech and NIIT, index-based shares erased most of the initial gains on profit-selling but survived to close in a positive territory with marginal rise.
Dealers said short-coverings on the penultimate day of the current settlement on the National Stock Exchange (NSE) also aided the uptrend. Mirroring the firm trend, out of 140 specified shares, 110 recorded sharp to moderate gains while 28 registered losses.
It was Zee Tele, and Satyam Comp which provided a boost to the Sensex, and the index managed to gain 68 points on Monday. With a gain of more than 9 per cent, Zee Tele was the main contributor in this rise. Satyam Comp also gained more than 7 per cent and helped the Sensex to show a 68-point rally. HLL, Reliance, Infosys, MTNL, L&T and Ranbaxy also showed a positive close.
With the latest rally, the index has managed to cross its first hurdle of 4380 points. While the index is above its short-term resistance, it is likely to face resistance at every rise. The next main hurdle is at around 4600 points. The level of Rs 4270 points should be considered as an immediate support.
Individually, HLL has moved in a narrow range for the last three trading sessions, and in the process, has formed a minor resistance at Rs 248. A move above this level will be a positive indication. The next hurdle for the stock is at around Rs 260. Minor base for the stock exists at Rs 242. It has a strong support at Rs 230. As for Reliance, the short-term resistance for the stock is at Rs 339 above which the short-term outlook will improve. The next resistance for the stock is at around Rs 345.
Zee Telefilm spurted by 38.85 to 465. Satyam Computer shot up by 38.45 to 555.15, Himachal Futuristic by 62.40 to 1576.45, Infosys Tech by 12.35 to 7979.00, Global Tele by 41.40 to 1073.05, BHEL by 2.80 to 125.05, Dr Reddy by 18.80 to 1169.45, Grasim by 3.15 to 254.55, L&T by 3.45 to 203.95, MTNL by 2.65 to 165.65, NIIT by 9.75 to 1741.60, Ranbaxy by 10.65 to 592.30, SBI by 1.15 to 197.90, TELCO by 2.15 to 91.40, Silverline by 40.30 to 402, Pentamedia by 29.20 to 434 and SSI Ltd by 116.70 to 2542.25.
