Satyam Computer: A Technical View

Within a very short period this scrip rose to add Rs 1200 in its market price. This rise had all the characteristics of Third wave. It began from Rs 501 and took a breather at Rs 974. At this level the formation of pattern on Satyam's charts began creating confusion as to whether its stock was being accumulated as distributed. The moment it crossed the level of Rs.974, Bulls took charge with full force and within couple of days it touched Rs. 1690, took a correction till Rs. 1356 and then touched all time high of Rs. 1749.

From this level of Rs. 1749 Satyam Computer began its southward journey. This fall was arrested at Rs. 992 and from here it has been moving in the Northward direction. So, we can say that it rose from Rs. 501 to Rs. 1749 by Rs. 1248 and then took a healthy correction of Rs. 757 from Rs. 1749 to Rs. 992. Technically, Satyam is showing no weakness in it various charts. From Rs. 992 it has been rising and on 8 May,1999 it touched Rs. 1449 before closing at Rs. 1401. This rise of Rs. 477 has come in a single Wave. A healthy correction to this wave is not ruled out. The member of Rupees shed by Satyam i8n this corrective Wave shall decide the future rise of it. After the completion of corrective Wave, Rs. 1469 will be the crucial level of resistance. for the next wave of rise. To maintain the strength in Satyam computer the Bulls will have to keep the price level above Rs. 1469. Otherwise, Bears will not leave the opportunity of hammering this scrip.