The carnage on the US markets over the week, reflected across global bourses, also had an effect on Dalal Street. To add to the woes, the monsoon concerns added fuel to the fire. Traders and speculators continued to unwind their positions in the auto, FMCG and tech counters. Though FIIs have been net buyers during the week, they have been net sellers during the last two sessions. On the other hand, mutual funds continued to be sellers on Dalal Street. The US and other global markets will have a mirror down effect on the Indian bourses. The benchmark BSE Sensex is likely to continue to follow the trend of the US and other bourses very closely. Incidentally, the US markets continue to remain weak. Even though the US Congress has passed a bill to make accounting practices stringent, it has come a little too late. The US markets would need more positive developments for investor confidence to return.

Technically, the market has broken all the previous support levels and is now going to test the all important psychological level of 3100. If it fails to stay above this level, we could see a further fall of 200-250 points.

CMC
The CMC stock has moved in a range of Rs 59.85 during the course of the week, touching an intra-day high of Rs 529.90 on July 18 and an intra-day low of Rs 470.05 on July 24. The downward trend on the CMC counter is likely to continue, while witnessing occasional bouts of correction. It should seek support at the Rs 432 level.

Digital GlobalSoft
The Digital stock has moved in a range of Rs 99.75 during the course of the week, touching an intra-day high of Rs 665 on July 19 and an intra-day low of Rs 565.25 on July 24. Our forecast that the weakness on the Digital stock would continue, “if it fails to move above the Rs 655.55 level,” has come true. The stock has slipped sharply. The weakness on the stock is likely to continue with occasional bouts of corrective rallies. It is likely to seek support at the Rs 514 level. On the upper side it faces resistance at the Rs 620 level.

HCL Technologies
The HCL Tech stock has moved in a range of Rs 30 during the course of the week. It has touched an intra-day high of Rs 235 on July 18 and an intra-day low of Rs 205 on July 23. It continues to stay below its 200-day moving average, which is a negative sign on the downside. It is likely to find support at the Rs 200 level, but if this level is breached, it could fall to a level of Rs 145.

Infosys Technologies
The Infosys stock continued to move in a narrow range of Rs 180.45 during the course of the week, touching an intra-day high of Rs 3236 on July 18 and an intra-day low of Rs 3055.55 on July 24. The stock is likely to seek support at the Rs 3065 level and below it the Rs 2826 level.

NIIT
The NIIT stock has moved in range of Rs 35.55 during the course of the week, touching an intra-day high of Rs 230.90 on July 18 and an intra-day low of Rs 195.35 on July 24. We had indicated in the last issue that “the NIIT stock would continue to fall if it moves below the

Rs 211.55 level”. This has come true. The downward trend is likely to continue amidst occasional bouts of corrective rallies. The stock is likely to seek support at the Rs 153 level. On the upside, it faces a resistance at the Rs 238 level.

Satyam Computers
The Satyam stock has moved in a range of Rs 23 during the course of the week, touching an intra-day high of Rs 242 on July 18 and an intra-day low of Rs 219 on July 23. It continues to stay below its 200-day moving average, which is a negative sign. If the Satyam stock falls below the Rs 210.45 level it is likely to fall further to a level of Rs 170. On the upper side it faces a resistance at the Rs 227 level.

Wipro
The Wipro stock has moved in a range of Rs 133.60 during the course of the week, touching an intra-day high of Rs 1324.90 on July 18 and an intra-day low of Rs 1191.30 on July 23. It continues to stay below its 200-day moving average, which is a negative sign. The Wipro stock is likely to remain range-bound. It faces a resistance level at the Rs 1378 level on the upper side and the down side it has support at the Rs 1220 level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 29/07/2002  

Nasdaq

Last week’s minor rally on the Nasdaq was short-lived. The carnage on the Dow Industrial took its toll on the Nasdaq as both the indices plummeted southward. The negative sentiment prevailing on the US bourses is likely to continue as more accounting frauds come to light. This, along with negative earnings growth, is likely to see the indices falling further with occasional bouts of corrective rallies being witnessed.

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