The anticipated broad-based correction has not materialised, but the markets have shown a sideways correction pattern. Traders and speculators seem to be churning their portfolio by shifting from Old Economy to tech stocks. FIIs, however, continued to remain net buyers, albeit their purchases remained limited.

Technically, the negative divergence formed by the BSE Sensex and S&P CNX Nifty has resulted in the markets moving in a subdued and sideways pattern. If the Sensex moves above the 3371 level and is able to sustain above this level for 12 trading days, then the Sensex is likely to test the 3478 level. Overall, this week could be highly volatile.

CMC
CMC moved in a range of Rs 73.65 during the course of the week, touching an intra-day low of Rs 436.25 and an intra-day high of Rs 510 on December 19. It however, failed to sustain above the Rs 477 level and it is necessary that it moves and sustains above this resistance level. If it succeeds, the next price target would be Rs 525.

Digital GlobalSoft
It moved in a narrow range of Rs 30, touching an intra-day low of Rs 595 on December 19 and intra-day high of Rs 625 on December 23. It has succeeded in closing above the Rs 620 level and if it continues to sustain above this level it is likely to test the Rs 693 level.

HCL Technologies
The HCL Tech stock moved in a narrow range of Rs 9, touching an intra-day high of Rs 193.75 on December 23 and an intra-day low of Rs 184.65 on December 24. It has however, failed to move above the Rs 200 level and is likely to move in a range-bound trend, before it again tries to test this level. On the downside, it is unlikely to fall below the Rs 170 level.

Infosys Technologies
It moved in a range of Rs 151.45, touching an intra-day low of Rs 4,546.55 on December 19th and an intra-day high of Rs 4,698 on December 24. Infosys incidentally, has managed to stay above the Rs 4,670 level, if it continues to do so, it is likely to again test the crucial resistance level of Rs 4,874 and this time even move above it.

NIIT
It moved in a narrow range of Rs 14, touching an intra-day low of Rs 196.50 and an intra-day high of Rs 182.50 on December 19. It has, however, managed to stay above the Rs 183 level for five trading days. If it succeeds in completing the 12-day cycle, it is likely to test the Rs 266 level. On the downside, the Rs 150 level is an important support level.

Satyam Computers
It moved in a narrow range of Rs 14.65 during the course of the week, touching an intra-day low of Rs 271.60 on December 19 and an intra-day high of Rs 286.25 on December 24. It has continued to move in a range-bound trend but continues to stay below the resistance level of Rs 292. If it succeeds in moving above this level, it is likely to test the Rs 328 level. On the downside, it is unlikely to fall below the Rs 264 level.

Wipro
It moved in a narrow range of Rs 47.70, touching an intra-day low of Rs 1552.30 on December 19 and an intra-day high of Rs 1,600 on December 24. It faces resistance at the Rs 1,692 level. On the downside, it is unlikely to fall below the Rs 1,500 level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 30/12/2002

Nasdaq

It moved in a sideways manner, due to the holiday season. On the upside, it is likely to face resistance at the 1387 level and it is important that it does not fall below the 1319 level for the upward trend to continue. Any adverse news on the Gulf region would see a sell-off on the US markets.