The Indian stock market witnessed a minor corrective rally caused by a pullback during the course of the week. However, volumes on both the premier bourses were dismally low. Heavy rainfall, which has partially curtailed the fears of a drought, helped to improve sentiment. Traders and speculators along with a few institutional investors were seen bargain-hunting on the bourses. While the traders and speculators were buying into specific counters in infotech and FMCG counters, FIIs and mutual funds were net sellers during the week, albeit on lower volumes.

Technically, the markets are likely to continue to drift in a lacklustre manner. The benchmark BSE Sensex is likely to face stiff resistance at the 3100 level, and is unlikely to move above this level in the immediate future. Any untoward negative news is likely to propel a selling spree on the bourses, as sentiment still continues to remain cautious and nervous. Stock specific action would continue on the bourses and the general trend of the markets is likely to be range-bound and lacklustre amidst thin volumes, due to the lack of any major institutional support at the current level, which is necessary for any major rally to unfold.

CMC
The CMC stock has moved in a range of Rs 50.35 during the course of the week, touching an intra-day low of Rs 446.65 on August 8 and an intra-day high of Rs 497 on August 7. As we had indicated in our last issue, the CMC stock has been able to successfully find support at the Rs 440 level. It is now important that it sustains and consolidates at this level for initiating any major rally. Currently, the CMC stock faces resistance at the

Rs 500 level and it is likely to struggle at this level. If the stock falls below the Rs 445 level, it is likely to fall further before seeking support at the Rs 379 level.

Digital GlobalSoft
The Digital stock has moved in a range of Rs 51.40 during the course of the week, touching an intra-day low of Rs 539.55 on August 2 and an intra-day high of Rs 590.95 on August 7. Even though the Digital stock moved below its 200-day moving average it was quick to bounce back above this level and has moved in a range-bound manner. The stock is likely to move in a range of Rs 100 over the next few trading sessions, if it is able to stay above the Rs 554 level.

HCL Technologies
The HCL Tech stock has moved in a range of Rs 22.95 during the course of the week, touching an intra-day high of Rs 199.95 and an intra-day low of Rs 177 on August 7. Lacklustre and sideways trading was witnessed on the HCL Tech counter during the week. The HCL Tech stock is likely to resume its downward trend with occasional rallies in between. It is likely to seek support at the Rs 140 level.

Infosys Technologies
The Infosys stock moved in a range of Rs 253 during the course of the week, touching an intra-day low of Rs 2,937 on August 2 and an intra-day high of Rs 3,190 on August 7. The stock has moved in a range-bound manner, even though some value-based institutional buying was seen on the stock. The Infosys stock faces resistance at the Rs 3,180 level and is likely to continue to move in a range-bound manner for the next few trading sessions.

NIIT
The NIIT stock has moved in an extremely narrow range of Rs 19.90 during the course of the week, touching an intra-day low of Rs 130 on August 2 and an intra-day high of Rs 149.90 on August 5. As we had indicated in our last issue, the NIIT stock consolidated itself after the last few weeks’ weakness. The stock is likely to move in a range-bound manner for a few trading sessions.

Satyam Computers
The Satyam stock has moved in a range of Rs 22.25 during the course of the week, touching an intra-day low of Rs 189.75 on August 6 and an intra-day high of Rs 212 on August 7. The stock has formed a minor divergence pattern and a minor rally is likely to unfold if it moves above the Rs 212 level.

Wipro
The Wipro stock has moved in a range of Rs 105.30 during the course of the week, touching an intra-day low of Rs 1,062.70 on August 2 and an intra-day high of Rs 1,168 on August 7. The Wipro stock would continue to move in a range-bound manner for the next few trading sessions.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 12/08/2002

Nasdaq

The seesaw ride continued on the Nasdaq as it witnessed value-based buying at lower levels and selling at higher levels. The confidence of the US investor continues to remain at its lowest ebb after several accounting malpractices and earning warnings, which negatively hurt the bourses. It is likely to face resistance at the 1,300 level and later at the 1,345 level.

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