The stock markets continued to trade cautiously but brokers remained optimistic as positive sentiments returned to the bourses. Volumes, however, continued to remain low due to a truncated trading week with festive holidays keeping traders and institutions away. Traders and speculators were seen buying in Old Economy and frontline tech stocks like Infosys and Satyam. FIIs too were net buyers during the week, along with mutual funds, buying mainly in Old Economy and index heavyweight stocks and selling PSU stocks. The news of the government putting off Nalco’s due diligence to January 2003 saw PSU stocks getting hammered down again.

The revamping of the MSCI (Morgan Stanley Capital International) Index Fund is likely to see India gaining more weightage which in turn could result in more FII inflows into the Indian equity markets. The BSE Sensex faces resistance at the 3020 level and it is important that it moves and sustains above this level for it to test the psychologically important 3100 level. The divestment factor continues to remain a major hindrance for the equity markets, as it continues to send negative signals to overseas investors. Institutional buying continued to remain important for the bourses to witness a major rally.

CMC
The CMC stock moved in a range of Rs 44.95 during the week, touching an intra-day high of Rs 426 on October 31 and an intra-day low of Rs 381.05 on November 5. The present downtrend is likely to continue. If the Rs 326 level is breached it could fall below the Rs 300 level.

Digital GlobalSoft
The Digital stock continued to move in a range of Rs 47.10 during the week, touching an intra-day high of Rs 523.90 on October 31 and intra-day low of Rs 476.80 on November 5. It has formed a minor divergence pattern and a small rally is likely to unfold, which would take the stock to the Rs 524 level.

HCL Technologies
The HCL Tech stock moved in the range of Rs 13.05 during the week, touching an intra-day high of Rs 166.40 on October 31 and an intra-day low of Rs 153.35 on November 1. A technical pull back is likely to unfold, taking the stock closer to its resistance level of Rs 174.

Infosys Technologies
The Infosys stock moved in a range of Rs 304.90 during the week, touching an intra-day high of Rs 4,069.90 on November 5 and an intra-day low of Rs 3,765 on October 31. As indicated, the stock moved above the Rs 3,907 level and is likely to test the Rs 4,200 level. The upward trend is likely to continue.

NIIT
The NIIT stock moved in a Rs 7.20 range during the week, touching an intra-day low of Rs 119.05 on October 31 and an intra-day high of Rs 126.25 on November 5. On the upside, it faces resistance at the Rs 137 level and on the downside, the Rs 111 level continues to remain a strong support level.

Satyam Computers
The Satyam stock moved in a range of Rs 24 during the week, touching an intra-day low of Rs 226 on October 31 and an intra-day high of Rs 250 on November 5. As indicated, the stock was able to move above its Rs 233 level and has since witnessed an upward trend.

Wipro
The Wipro stock has moved in a narrow range of Rs 52 during the week, touching an intra-day low of Rs 1,348 on November 1 and an intra-day high of Rs 1,400 on November 5. If it moves above the Rs 1,498 level it is likely to test the Rs 1,562 level. On the downside, it is likely to find support at theRs 1,315 level.

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

Nasdaq

Backed by good news, the rally on the Nasdaq continued during the week. The Federal Reserve lowered interest rates by 50 basis points, which exceeded Wall Street’s expectations and they gave it a thumbs up. Cisco too beat the Street’s expectation, which resulted in a Wall Street rally. The upward trend is likely to continue on the Nasdaq. It faces a resistance at the 1436 level.