Caution was the flavour of the week on Indian bourses, due to the ongoing tensions between India and Pakistan. The markets witnessed high volatility during the course of the week—there were intermediate corrective rallies, but these were short lived.

Volumes continued to be modest. Meanwhile, FIIs continued to remain on the sidelines, occasionally selling on the pharma and infotech sectors. Traders and speculators have used a cautious approach, reducing their exposure in big cap stocks and switching partially to mid-cap stocks. Mutual funds continued to be net sellers on the bourses, selling index heavyweights like Hindustan Lever and ITC due to poor topline growth. They along with traders and speculators were also seen selling Reliance and Reliance Petroleum due to its close proximity to the border and the likelihood of Pakistan attacking them in case an Indo-Pak war broke out Technically, the markets would continue to display bouts of volatility, amidst occasional corrective rallies. The broadbased trend of the markets would continue to be cautious and rangebound. FIIs are expected to remain on the sidelines till the Indo-Pak tension eases. Traders and speculators are likely to concentrate on the mid-cap stocks. The benchmark BSE Sensex would continue to remain rangebound for the next few trading sessions.

CMC
The CMC stock has moved in a range of Rs 87.50 during the course of the week, touching an intra-day high of Rs 699 on May 24 and an intra-day low of Rs 611.50 on May 23. Technically, the overall negative sentiment on the bourses has affected sentiment on the CMC counter. It is important that it moves above the Rs 672 level and stays above this level for it to rally to the Rs 707 level.

Digital Globalsoft
The downtrend on the Digital counter continued during the course of the week. It has moved in a range of Rs 79.60, touching an intra-day high of Rs 666 on May 27 and an intra-day low of Rs 586.40 on May 23. The stock is likely to witness a corrective rally amidst high volatility and move around the Rs 670 level, and then if it is able to sustain itself at this level it could move above the Rs 710 level.

Infosys
The Infosys stock moved in a range of Rs 350 during the course of the week, touching an intra-day high of Rs 3,800 on May 24 and an intra-day low of Rs 3,450 on May 29. As we had indicated in our last issue, the Infosys stock fell below the level of Rs 3,482 on an intra-day basis, but has now jumped above this level on the back of value-based buying at lower levels. The Infosys stock is likely to test the Rs 3,654 level in next few trading sessions.

NIIT
The NIIT stock moved in a narrow range of Rs 39.10, touching an intra-day high of Rs 264.10 on May 29 and an intra-day low of Rs 225 on May 23. If the sentiment on the bourses improves we could see the NIIT stock testing the Rs 274.65 level in coming trading sessions.

Satyam Computers
The Satyam stock moved in a range of Rs 28.75, touching an intra-day high of Rs 236.75 on May 27 and an intra-day low of Rs 208 on May 30. Value-based buying by a few large institutions has helped the Satyam stock to rally on the bourses. Technically, it has moved above its 200-day moving average during the week, which augurs well for the stock, but it is likely to face resistance at the Rs 232 and the Rs 238 level.

Wipro
The Wipro stock has moved in a narrow range of Rs 106 during the course of the week, touching an intra-day high of Rs 1,619 on May 27 and an intra-day low of Rs 1,513 on May 23. The Wipro stock has failed to move above the Rs 1,633.25 level, which was the essential level for initiating a rally. It is likely to move in a rangebound manner for a few trading sessions.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 03/06/2002

Nasdaq

The failure of the Nasdaq in staying above the 1719 level for four trading days has resulted in it moving downward. The underlying weakness on the Nasdaq will continue and the index could decline further. But it is likely to find support at the 1600 level. In the event that it fails to find support at this level, it is likely to fall to the 1573 level where a short-term support level exists.

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