The Hindu Business Line : Nasdaq at crucial juncture

NEGATIVE sentiment prevailed for yet another week at the American bourses. There was, however, some recovery on Friday on the back of the SEC's decision to close an earlier enquiry about IBM.

The week ahead would turn out to be a crucial one with a whole lot of top companies scheduled to come out with their earnings numbers.

Earlier in the week, a subdued trend prevailed on account of worries pertaining to oil price rise. Besides, top telecom companies had indicated that their earnings would trail earlier forecast owing to curb in consumer spending. These factors affected market sentiment during the week.

The underlying weakness at the American bourses pushed the benchmark indices to lower levels during week. The S&P 500 declined one per cent for the week while the Dow Jones Industrial Average and tech-laden Nasdaq Composite Index registered a fall of 0.8 per cent.

As iterated in the earlier weeks, the 1695-level continues to be the critical. The Nasdaq Composite Index is currently passing through a very crucial juncture. It is currently perched very close to the 1695 level and a decisive move could transpire shortly.

Considering that the index is yet to break below the 1695 mark, there is still a possibility of a short-term bounce in the index. On the upside, the immediate resistance lies at the 1800-1850 range. A move above 1875 would have positive implication for Nasdaq Composite Index.

(Note: The analysis and opinion expressed in this column is based on the technical analysis of the past price behaviour. Analysis and price targets are based on Elliott Wave and Point & Figure techniques. There is a risk of loss in trading)

Send this article to Friends by E-Mail

Stories in this Section
Tea — pale and watery

Tea: Positive policy changes

So, what's for tea?

Coffee: Brewing still

`We want to deliver a better mix' -- — Mr P. T. Siganporia, Deputy Managing Director, Tata Tea

Uneven tax field for domestic manufacture

Mastershare 86: Hold/Avoid fresh exposures

Sundaram Bond Saver: Invest

UTI Services Fund: Cut exposures and book profits

Pioneer ITI FMCG: Pare exposures

MIP '97: Take cash, avoid rollover