Selling pressure continued on the bourses, especially in tech stocks, due to persistent weakness on the Nasdaq and other global markets. Traders and speculators were seen buying into index heavyweights and a few tech counters, which helped curb the fall on the benchmark BSE Sensex. FIIs continued to be net sellers on the markets, while mutual funds were net buyers.

Incidentally, Standard & Poor’s has downgraded India’s long-term and short-term ratings. This along with the IMF reducing India’s GDP growth projection for the current fiscal will have a negative impact on fresh investments from FIIs. Technically, the benchmark BSE Sensex failed to find support at the crucial 3070 level, and dropped. The markets are likely to witness a further fall, which could take the Sensex below the 3000 level. FII investments in the Indian markets continue to remain a cause of concern.

CMC
The CMC stock has moved in a range of Rs 53 during the course of the week, touching an intra-day high of Rs 553 on September 19 and an intra-day low of Rs 500 on September 24. The stock was unable to move above the Rs 554 level due to selling pressure at higher levels and has since fallen further. CMC is likely to seek support at the Rs 480 levels.

Digital GlobalSoft
The Digital stock has moved in a narrow range of Rs 49.25 during the course of the week, touching an intra-day high of Rs 604.30 on September 23 and intra-day low of Rs 555.05 on September 24. The expected rally in the stock did not materialise as it faced selling pressure on the upside as institutions liquidated their positions. on fears of a slowdown in revenues and also due to the lack of clear direction on integrating Digital post the HP-Compaq merger.

HCL Technologies
The HCL Tech stock has moved in a narrow range of Rs 20.70 during the course of the week, touching an intra-day low of Rs 198.10 on September 20 and an intra-day high of Rs 218.80 on September 26. The stock failed to sustain above the Rs 224 level and has since fallen. It is likely to seek support at the Rs 185 level.

Infosys Technologies
The Infosys stock has moved in a range of Rs 194.85 during the course of the week, touching an intra-day high of Rs 3,570 on September 19 and an intra-day low of Rs 3,375.15 on September 24. The Infosys stock failed to move above its resistance level of Rs 3,707.70 and has since faced selling pressure. It is likely to seek support at the Rs 3,100 level.

MRO-TEK
MRO-TEK started in 1984 with an initial focus on network computing. Today, the company is a leader in the networking and last mile access segment. Yet it continues to be perceived as a hardware company. Hence the company continues to be traded at lower prices, much lower than its book value of Rs 45, as hardware companies are generally traded at lower PEs. Technically, the current price of MRO-TEK is Rs 15.75 as on September 26 and it’s unlikely to fall below the Rs 16 level.

NIIT
The NIIT stock has moved in an narrow range of Rs 15.10 during the course of the week, touching an intra-day high of Rs 142.75 on September 19 and an intra-day low of Rs 127.65 on September 24. The stock continued to move in a range-bound manner. The downtrend is likely to continue in the stock.

Satyam Computers
The Satyam stock moved in a narrow range of Rs 18.65 during the course of the week, touching an intra-day high of Rs 229 on September 19 and an intra-day low of Rs 210.35 on September 24. The stock continued to face selling pressure at higher levels and was unable to move above its resistance level of Rs 247. It has since lost considerable ground. The stock is likely to seek support at the Rs 189 level.

Wipro
The Wipro stock has moved in a narrow range of Rs 94.90 during the course of the week, touching an intra-day low of Rs 1,270.10 on September 20 and an intra-day high of Rs 1,365 on September 26. The stock is likely to seek support at the Rs 1,220 level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 30/09/2002

Nasdaq

The See-saw trend continued on the Nasdaq on continued fears of the USA declaring war on Iraq and also due to weak internal economic conditions, but a cluster of better-than-expected economic news helped the market extend the gains on the NYSE and reduce losses on the Nasdaq. Now markets will turn their attention on Q3 results and if they meet expectations, that would be the perfect trigger for a strong rally to unfold.