A few of these stocks have already gone into a major uptrend and a few more are likely to follow suit. The spurt in the activity in the new economy stocks will bring back new investors back into the market.

However, investors must first select the stocks as a few of them are still in major downtrend and could be hurt if they pick up the wrong ones. The new economy stocks are from different sectors and I will today take a mix of these sectors, picking the best of the stocks.

The stocks which are in a major uptrend or which are likely to bottom out soon will be the ones. In case more stocks bottom out, I will take up other stocks in the new economy at a latter date.

Infosys
Infosys topped out along with the other new economy stocks and the market in February and since then the stock has been exhibiting descending intermediate tops and bottoms. The stock has been staying below its falling 30 weekly moving average (WMA) and is currently below it. The relative strength line has been bearish indicating that the stock is under performing the indices and the current intermediate rise is a bear market rally for it.

The stock has its earlier intermediate top at 8041.65 and the stock will have to move past this level in the current intermediate rise if the major trend of the stock has to be redefined as up. However, there are many resistances to the stock before it can cross this level and investors must wait for some more time and get into it.

Possibly if the stock exhibits a higher intermediate bottom in the next intermediate downtrend. The daily momentum indicators for the stock have turned up. Traders must trade the stock on the long side and must use the first minor decline or a sideways move to get into the stock.

Satyam Computer
Satyam Computer is the first new economy stock to have gone into a major uptrend. The stock has crossed its earlier intermediate top while writing this article and is in a major uptrend. As the stock was also battered down along with the others in this sector, it took quite some time to bottom out.

The bottom formed is below its falling 30 WMA which suggest that the stock will witness some selling pressure at higher levels. However, once the 30 WMA flattens out, the selling pressure will reduce and higher levels could be seen. Investors can pick up long positions in the first minor correction in the coming week while traders must trade the stock in the long side. The stock is in an intermediate uptrend and the uptrend will take it above its 30 WMA.

As the stock is trading below its falling 30 WMA, the relative strength line is also below its trigger line, but is moving closer to it and will soon cross it.

Digital Equipment
Digital Equipment is the next stock in the ICE sector, which is likely to go into a major uptrend. The stock has moved very close to its earlier intermediate top in the current intermediate uptrend and a close above 569 will confirm a major uptrend. While I have been writing this article, the stock has moved closer to this level and a close above this level will mean a major uptrend. The relative strength line has just moved above its trigger line and once the stock confirms a major uptrend, the relative strength line will move above its trigger line suggesting that it has begun to outperform the indices. Investors must pick up long positions in the next minor decline in the coming week while traders must trade the stock on the long side.

Wipro
Wipro has been oscillating about its 30 WMA but has been exhibiting descending intermediate tops and ascending intermediate bottoms. A close above the upper descending trendline with a rise in volume will confirm that the major trend of the stock is up. As long as the stock trades between the trendlines, the major trend will be down or sideways. The relative strength line has moved closer to its trigger line and a breakout by the stock on the upper side will result in the relative strength line also moving up.

However, as the major trend is sideways, it is a good stock to trade. Once the stock breaks out of the upper trendline, investors must look out for long positions.

Himachal Futurustic
Himachal Furturustic is in a major downtrend and like Wipro, the stock has been moving within a symmetrical triangle. It has been exhibiting higher intermediate bottoms and descending intermediate tops. The relative strength line is a little weak suggesting that the stock is underperforming the indices.

However, a close above the upper descending trendline will result in the stock going into a major uptrend. This will also result in the relative strength line moving above its trigger line. Till such time, investors must only keep a watch at the stock and must trade it within these trendlines.