The markets have finally been able to move above the 3100 resistance level, which fuelled a further 100+ point rally. But profit-booking at higher levels erased some of the gains. Traders and speculators were actively building positions in index heavyweights and tech stocks. However, FIIs have been net sellers, while mutual funds were net buyers, as selling pressure from UTI to meet redemption commitments eased. Disappointment continued on the divestment front, as once again the meeting of the Cabinet Committee on Disinvestment was postponed to September 7.

Technically, the benchmark BSE Sensex has stayed above the 3100 level, and should continue to do so for 12 trading days for a bullish wave to emerge. The markets are likely to move in a range-bound manner if the BSE Sensex falls below the 3100 level, but not below the 3070 level. On the upside, it is likely to face selling pressure at higher levels and would meet with resistance at the 3231 level. Fresh triggers on the divestment front could give the necessary boost to the markets along with an increase in FII investments. Bullish signals are emerging in Infosys, Satyam and Digital, and this could enthuse investor sentiment.

CMC
The CMC stock moved in a range of Rs 60.90 during the week, touching an intra-day low of Rs 509.10 on August 29 and an intra-day high of Rs 570 on September 2. The CMC stock was successfully able to move above its resistance level of Rs 530, which augurs well for the stock. On the downside, any fall below the Rs 513 level would negate the positive sentiment.

Digital GlobalSoft
The Digital stock moved in a range of Rs 54.05 during the week, touching an intra-day low of Rs 578 on August 29 and intra-day high of Rs 632.05 on September 2. Any fall below the Rs 580 level will see a downslide in the stock. The stock faces resistance at the Rs 645 level.

HCL Technologies
The HCL Tech stock moved in a range of Rs 31.95 during the week, touching an intra-day low of Rs 192.25 on August 29 and an intra-day high of Rs 224.20 on September 2. The stock moved above its resistance level of Rs 223, but was unable to stay above this level due to selling pressure at higher levels. It needs to move above the Rs 224 level and stay there for at least four days for it to move closer to the Rs 250 level. On the downside, it is important that it does not fall below the Rs 192 level.

Infosys Technologies
The Infosys stock has moved in a range of Rs 267.45 during the week, touching an intra-day low of Rs 3,396.55 on August 29 and an intra-day high of Rs 3,664 on September 2. Even though, the Infosys stock fell below the Rs 3,396.55 level, it quickly bounced back. In fact, it was able to move above the Rs 3,550 level, but could not stay above this level due to selling pressure. Now it is important that the Infosys stock moves above the Rs 3,665 level for it to rise and test the Rs 3,870 level.

NIIT
The NIIT stock has moved in a narrow range of Rs 19.15 during the week, touching an intra-day low of Rs 138.95 on August 29 and an intra-day high of Rs 158.80 on September 3. A clear trend has still not emerged for the NIIT stock and it is likely to continue to move in a range-bound and sideways manner.

Satyam Computers
The Satyam stock has continued to move in a narrow range of Rs 19.15 during the course of the week, touching an intra-day low of Rs 225.55 on August 29 and an intra-day high of Rs 244.70 on September 2. The stock faces selling pressure at higher levels. It is likely to face resistance at the Rs 247 level; if it moves above this level, it is likely to rise to test the Rs 281 level.

Wipro
The Wipro stock has moved in a range of Rs 149.70 during the week, touching an intra-day low of Rs 1,165.30 on August 29 and an intra-day high of Rs 1,315 on September 2. It faces resistance at the Rs 1,290 level and is likely to stay range-bound till it crosses this level. On the downside, any fall below the Rs 1,150 would aggravate further fall to the Rs 1,060 level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 09/09/2002

NASDAQ

The scars of 9/11 continue to haunt the US markets, which changed the trading patterns of the capital markets globally. Even after one year, sentiment continues to be negative on the US markets, as selling pressure at higher levels continues to drag the Nasdaq down, amidst extreme bouts of high volatility. The Nasdaq continues to face resistance at the 1350 level and it is important that this level is crossed successfully for an upward trend to resume again.