MARCH 10: A sharp improvement in Infosys in last few months has changed theSensex structure drastically, making it the heaviest stock in the index.Infosys now accounts for nearly 27 per cent of the index weightage.And it was Infosys which kept Sensex volatile last week. The Sensex showedwild moves, and on weekly basis, lost 81 points. In the process, it brokethe important base of 5340 points. The next major support now exits at 5125points.
Individually, the outlook for the index counters is not very encouraging.Infosys has closed near its short-term support level, which is at Rs 11,600.A dip below this would be bad for its short-term outlook. On the upper side,the stock has a strong resistance at Rs 12,600. Above this, the stock islikely to show a good move.
HLL has shown a bounce from its medium-term support of Rs 2300. Till thislevel is broken, the short-term outlook for the stock remains more or lesspositive. On the upper side, the first resistance for the stock exists at Rs2480.
Among heavyweights, ITC has done well and showed a very strong close onFriday. The stock has crossed its short-term resistance levels is heading totouch another hurdle. The medium-term resistance for the stock exits at Rs1055.
Reliance is also near its medium-term support level of Rs 215. It may showsome consolidation. A rally is also not ruled out. However, the rally wouldbe purely of a corrective nature, and unlikely to be sustained. SBI has alsobroken all supports, and at best, may show a rally of a corrective nature.MTNL is comparatively better. The stock has a good base at Rs 280, and tillthis level is broken, the medium-term outlook for the stock remainspositive. Ranbaxy is also making an attempt to show a rally. The stock hasmajor resistance at Rs 740. The position of Bhel, L&T, and HPCL is similar.NIIT, however, has shown a smart improvement by moving above its medium-termresistance levels, which is a positive indication. The outlook for the stockappears positive.
Last week, the software sector showed a sharp correction and a large numberof stocks broke their respective support levels. Digital Equipment, TataElxsi, Silverline, Rolta, Aptech, and SSI fall into this category.
The position of other counters like Satyam Computers, Global Tele, NIIT, andDSQ Software is comparatively better, as these stocks yet to break theirshort-term bases.
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