Buying interest on the bourses was lacking in the beginning of the week resulting in the markets losing ground, and the benchmark BSE Sensex touching an intra-day low of 2828.48 on October 28. Good Q2 numbers from a few Old Economy stocks saw the markets rally on October 29 on value-based buying. Traders and speculators were seen buying into specific index heavyweight counters. FIIs continued to remain net sellers on the bourses. Mutual Funds too were net sellers on the bourses, but were seen buying at lower levels.

Technically, the markets saw a sell off after it fell below the crucial previous low level of 2916, as it touched an intra-day low of 2828.48 on October 28. This was a new 52-week low. The Indian markets have touched the lows of 9/11, and like all other global markets, have finally completed a full circle, which is a positive sign for the future, as it indicates that the worst is over. Now it is important that the Sensex sustains and consolidates at the present levels. Any negative news would see the markets falling below the 2828 level. Institutional buying is important for the bourses to witness a major rally and it is important that the government takes necessary steps on the divestment front and in implementing second generation reforms to woo FIIs investments.

CMC
The CMC stock moved in a range of Rs 140 during the week, touching an intra-day high of Rs 520 on October 24 and an intra-day low of Rs 380 on October 25. The sell off on the CMC counter continued during the week fuelled by its poor results. The stock therefore failed to find support at the Rs 440 level, and fell further before stabalising at the Rs 400 level. It is likely to move in a sideways pattern for a few trading sessions, before it tries to move above the Rs 425 resistance level.

Digital GlobalSoft
The Digital stock continued to move in a range of Rs 142 during the week, touching an intra-day high of Rs 556 on October 24 and intra-day low of Rs 414 on October 29. The disappointing Q2 numbers saw a sell off on the Digital stock, as traders and speculators unwound their long positions. The downward trend is likely to continue, till the floating stock is absorbed.

HCL Technologies
The HCL Tech stock moved in a range of Rs 15.25 during the week, touching an intra-day high of Rs 173.10 on October 24 and an intra-day low of Rs 157.85 on October 25. The selling pressure continued on the counter after the company’s dismal performance. The stock is likely to witness a technical pull-back in a few trading sessions and thereafter move in a range-bound trend.

Infosys Technologies
The Infosys stock moved in a range of Rs 123.60 during the week, touching an intra-day high of Rs 3,828.80 on October 24 and an intra-day low of Rs 3,705.20 on October 29. The general weakness on the bourses, especially in infotech counters has affected the trend on Infosys. It moved in an extremely narrow trend. Hereafter, it is likely to face selling pressure at higher levels. On the upside, if it crosses the Rs 3,907 level, it will move to test the Rs 4,200 level. On the downside, it is not likely to fall below the Rs 3,525 level.

NIIT
The NIIT stock moved in a range of Rs 20.20 during the week, touching an intra-day high of Rs 133 on October 24 and an intra-day low of Rs 112.80 on October 29. The trend of the NIIT stock continued to remain range-bound. Though the NIIT stock fell to an intra-day low of Rs 112.80 on October 29, it continued to remain above the support level of Rs 111. Incidentally, NIIT has formed a positive divergence pattern and a small rally is likely to unfold if it moves above the Rs 129 level.

Satyam Computers
The Satyam stock continued to move in a narrow range of Rs 17.25 during the week, touching an intra-day high of
Rs 226.90 on October 29 and an intra-day low of Rs 209.65 on October 25. It continued to move in a range-bound manner. The Satyam stock now faces resistance at the Rs 233 level and if it succeeds in moving and sustaining above this level, it is likely to move closer to the Rs 255 level.

Wipro
The Wipro stock has moved in a narrow range of Rs 45.30 during the week, touching an intra-day high of Rs 1,426.90 on October 24 and an intra-day low of Rs 1,381.60 on October 30. Wipro failed to move above its resistance level of Rs 1,498. On the upside, the Wipro stock continues to face resistance at the Rs 1,498 level and on the downside, it is likely to find support at the Rs 1,200 level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 04/11/2002

Nasdaq

The upward trend on the Nasdaq continued during the week with occasional bouts of correction, as it consolidated its gains. On the upside, the Nasdaq continues to face resistance at the 1348 level, and now it is important that it moves above this level for a further 100-point rally to unfold. On the downside, it is likely to find support at the 1300 level.