The weakness on the Indian bourses continued through the course of the week as bulls liquidated their positions. Traders and speculators were seen unwinding their long positions, on the back of margin problems and monsoon concerns. They were seen liquidating in FMCG and auto stocks. FIIs and mutual funds, on the other hand, were net buyers. They were seen buying, but their purchases were limited. Incidentally, the new finance minister has announced fresh sops for the middle income group by announcing an increase of Rs 3,000 on 80L deduction. The TDS limit for dividend from companies and mutual funds has also increased to Rs 2,500 from Rs 1,000. The service tax on life insurance premium has also been waived. But these sops have come a little too late, as investor sentiment had already suffered.

Technically, the markets have taken a beating due to monsoon concerns and have fallen by more than 100 points, since the sensex fell below 3,100—a major resistance level. The bulls have been the main culprits as they liquidated their positions due to margin problems. The benchmark BSE Sensex is likely to seek support at the 2,937 level and a minor corrective rally is likely to unfold.

CMC
The CMC stock continued to head downward. It has moved in a range of Rs 78 during the course of the week, touching an intra-day high of Rs 518 on July 27 and an intra-day low of

Rs 440 on July 31. The stock is closer to its 200-day moving average and is likely to fall below it in a few trading sessions. The CMC stock is likely to seek support between the Rs 430-440 levels. If it is unable to sustain at these levels the fall will continue, before it attempts to seek a support at the Rs 380 level. The stock is likely to witness occasional bouts of corrective rallies. On the upper side, it faces resistance at the Rs 500 level.

Digital GlobalSoft
The Digital stock has moved in a range of Rs 58.70 during the course of the week, touching an intra-day high of Rs 593.70 on July 25 and an intra-day low of Rs 535 on July 31. The weakness continued on the Digital stock, with occasional bouts of corrective rallies. It is closer to its 200-day moving average and is likely to breach the average in a few trading sessions. On the downside, it could find support at the Rs 514 level. On the upside, it faces resistance at the Rs 620 level.

HCL Technologies
The HCL Tech stock has moved in a range of Rs 59.50 during the course of the week, touching an intra-day high of Rs 222.50 on July 25 and an intra-day low of Rs 163 on July 31. The HCL Tech stock is likely to continue moving downward with occasional bouts of correction.

Infosys Technologies
The Infosys stock continued to move in a range of Rs 204 during the course of the week, touching an intra-day high of Rs 3,179 on July 25 and an intra-day low of Rs 2,975 on July 26. The stock is likely to move in a range-bound manner for the next few trading sessions.

NIIT
The NIIT stock has moved in a range of Rs 102.30 during the course of the week, touching an intra-day high of Rs 208.90 on July 25 and an intra-day low of Rs 106.60 on July 31. The downtrend in the NIIT stock continued on the back of weak Q3 numbers. It was unable to find support at the Rs 153 level and has therefore fallen further. The stock is likely to consolidate at the present level before it reflects the future trend.

Satyam Computers
The Satyam stock has moved in a range of Rs 29 during the course of the week, touching an intra-day high of Rs 227.35 on July 25 and an intra-day low of Rs 198.35 on July 31. It continues to stay below its 200-day moving average, which is a negative sign. The stock has fallen below the Rs 210.45 level, and if it remains below this level, it would continue to fall further. However, if it moves above this level it could move up and is likely to face resistance at the Rs 227 level.

Wipro
The Wipro stock has moved in a range of Rs 253.45 during the course of the week, touching an intra-day high of Rs 1,346 on July 25 and an intra-day low of Rs 1,092.55 on July 31. The Wipro stock was unable to find support at the Rs 1,220 level and should seek support at the Rs 1,030 level. It is likely to move in a range-bound manner for the next few trading sessions.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 05/08/2002

Nasdaq

The Nasdaq witnessed a corrective rally along with the Dow Industrial after last week’s carnage. The minor corrective rally is likely to continue on the US indices. The index is likely to face resistance at the 1411 level on the upper side. On the downside, the Nasdaq should seek support at the 1237 level.

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