The good second quarter results announced by Infosys, and a rally on the US and other global bourses, helped the Indian markets post a rally. This rally took the benchmark BSE Sensex above the psychological 3000 level. But profit booking at higher levels saw the Sensex falling back below 3000. Divergent views on divestment held by ministers in the NDA government have also ruined sentiment on PSU stocks and BPCL and HPCL bore the brunt of speculative selling. Traders and speculators were seen buying into infotech and index heavyweights. FIIs continued to remain net sellers on the bourses, despite attractive valuations. However, mutual funds continued to remain net buyers, albeit in smaller quantities.

Technically, the markets witnessed a small rally after the formation of a minor divergence pattern. This rally saw the Sensex move above the 3000 level to touch the 3031.01 level intra-day on October 16, but it closed below this level. It is important that the BSE Sensex moves above the 3000 level and stays above it for 12 trading days for a 100-point rally to unfold. But it is likely to face strong resistance at the 3000 level. On the lower side, 2921 continues to remain an important support level.

CMC
The CMC stock moved in a range of Rs 89 during the course of the week, touching an intra-day low of Rs 516.30 on October 10 and an intra-day high of Rs 605 on October 11. Even though CMC was able to move above its resistance level of Rs 552 intra-day, profit booking at higher levels has erased these gains. Now, it is important that the stock closes above the level of Rs 552 for it to move closer to its next resistance level of Rs 573. On the downside, the stock is likely to find support at Rs 495.

Digital GlobalSoft
The Digital stock continued to move in a narrow range of Rs 42.50 during the course of the week, touching an intra-day low of Rs 536.50 on October 10 and intra-day high of Rs 579 on October 14. The lack of speculative interest continued to hinder the upward trend on the Digital stock. It is likely to continue to move in an extremely rangebound manner till it moves above the Rs 600 level.

HCL Technologies
The HCL Tech stock moved in a range of Rs 21.65 during the course of the week, touching an intra-day low of Rs 193.20 on October 10 and an intra-day high of Rs 214.85 on October 14. As we had indicated last week, the stock moved in a rangebound manner. On the upside the stock faces resistance at the Rs 211 level. If it moves above this level, it will touch the Rs 225 level soon.

Infosys Technologies
The Infosys stock moved in a range of Rs 453.40 during the course of the week, touching an intra-day low of Rs 3,453.60 on October 10 and an intra-day high of Rs 3,907 on October 16. A rally was seen on the Infosys counter after it declared good Q2 results, but profit booking is likely at higher levels. It is expected to continue its upward trend thereafter and move closer to the Rs 4,200 level.

NIIT
The NIIT stock moved in the Rs 16.85 range during the course of the week, touching an intra-day low of Rs 127.15 on October 10 and an intra-day high of Rs 144 on October 14. NIIT continues to move in a rangebound manner. The stock formed a minor positive divergence and a minor rally is anticipated if it moves above the
Rs 142 level.

Satyam Computers
The Satyam stock continued to move in a narrow range of Rs 24.35 during the course of the week, touching an intra-day low of Rs 193.35 on October 10 and an intra-day high of Rs 217.7 on October 16. On the back of good Q2 results declared by Infosys, a rally was seen in Satyam, in anticipation of good Q2 numbers. On the upside, the Satyam stock is likely to face resistance at Rs 222.50. If this level is crossed successfully it is likely to move closer to the Rs 237 level.

Wipro
The Wipro stock moved in a range of Rs 212.80 during the course of the week, touching an intra-day low of Rs 1,285 on October 10 and an intra-day high of Rs 1,497.80 on October 16. Similarly, buoyed by the good Q2 numbers of Infosys, Wipro too posted a rally. It is likely to face resistance at the Rs 1,520 level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 21/10/2002

Nasdaq

After sustained underlying weakness the Nasdaq was finally able to post gains for four trading days on a few good Q3 results, before profit booking saw it lose ground on October 16. On the upside it is likely to face resistance at the 1283 level. If this level is crossed successfully it is likely to move closer to the 1314 level.