Selective Buying To Continue

Updated: Apr 25 2002, 05:30am hrs
Despite a weak Nasdaq, the opening for the domestic market was firm, and the performance thereafter was encouraging. Counters like Zee Tele, Aftek Info, Global Tele, Rolta, Mukta Arts, and Tata Elxsi managed to record impressive gains.

The index meanwhile gained 11 points, and the position the market does not change drastically. A mixed trend continues to prevail as far as the index is concerened, whereas selective counters will continue to do well.

While a large number of IT related counters remained firm, Infosys showed a dull trend. The position however will improve smartly above Rs 4,000. The level of Rs 3,765 continues to remain an important reference point for long positions.

Satyam Computers also remained range-bound, and unless the level of Rs 258 is broken, the short-term position may remain favourable.

Digital Global meanwhile closed in negative territory but the short-term position will weaken only below Rs 660. On the upper side, a major hurdle lies only at around Rs 750.

The quarterly results which are to be announced on Thursday should play an important role in determining its short-term direction.

The performance of Zee Tele was impressive. As mentioned earlier, the stock is above all short-term hurdles, and the next resistance for the counter is at around Rs 220. The level of Rs 160 is an immediate base, and should be used as stop loss for long positions.

Global Tele also continued its recovery, and further improvement will not bring surprise. It has a major hurdle only at around Rs 138. NIIT, and SSI remained firm and a sideways move is expected in the short-term.

Among the second rank counters, Aftek Info managed to do very well. Although profit-booking is not ruled out at higher levels, the medium term position for Aftek Info, VisualSoft, Mastek, and Polaris continue to remain favourable.

As for non-software stocks, the outlook remains mixed. Reliance dipped marginally, and sideways to negative move is likely. So is the case with RPL. ITC, and HLL may also show a dull trend. MTNL, SBI, and L&T may show a firm trend.

— The analyst holds long positions in Zee Tele and Global Tele.