Revival of the monsoons in several parts of India, and expectations of a US federal rate cut, which would improve the sentiment of the tech sector, resulted in a minor rally on the bourses. Unfortunately, the cut did not materialise and the markets witnessed a fall. Traders and speculators were active in FMCG, auto and index heavyweight stocks, which helped the markets post gains. FIIs and mutual funds continued to be net sellers, while volumes continued to be low on both the premier exchanges.

Technically, the markets are likely to continue to move in a lacklustre and range bound manner. Even though, the markets saw gains for three consecutive trading days it is unlikely that this upward trend would sustain due to the lack of institutional activity and low volumes. The benchmark BSE Sensex is likely to face stiff resistance at the 3100 level. The markets need fresh triggers for the underlying sentiment to turn positive. Any negative news could propel a sell off, and result in the BSE Sensex sliding further by 100-150 points. Stock specific action would continue on the bourses. The worrying signs for the markets are the FII and institutional investments, as they continue to remain on the sidelines. For the BSE Sensex to move above the 3100 level it is important that institutional participation increases.

Speeding up of the disinvestment process could also trigger the market, as it would shift the action on to the PSU stocks, which in turn could help improve the overall sentiment.

CMC
The CMC stock moved in a range of Rs 39.80 during the course of the week, touching an intra-day high of Rs 480.00 on August 8 and an intra-day low of Rs 440.20 on August 9. As we had indicated last week, this stock has been consolidating. Even though it fell below the

Rs 445 level, it bounced back. Any fall below this level would result in a downward drift. However, it could find support at the Rs 379 level.

Digital GlobalSoft
This stock moved in a range of Rs 22.85 during the course of the week, touching an intra-day high of Rs 581.40 on August 12 and an intra-day low of Rs 552.10 on August 14. If it fails to move above the Rs 563 level, it could fall further, before seeking support at the Rs 435 level.

HCL Technologies
The HCL Tech stock moved in a range of Rs 21.90 during the course of the week, touching an intra-day low of Rs 172.10 on August 9 and an intra-day high of Rs 194.00 on August 12. The stock is likely to face selling pressure on the upper side. If it is able to stay above the Rs 174 level, we would see this upward trend continuing, and the stock could move above the Rs 200 level in a few trading sessions. If it fails to stay above this level, it could fall further.

Infosys Technologies
The Infosys stock moved in a range of Rs 186.70 during the course of the week, touching an intra-day low of Rs 3,062.30 on August 9 and an intra-day high of Rs 3,249 on August 13. The stock was able to move above the Rs 3,180 level and has since witnessed a rally. It has also formed a minor divergence pattern, which augurs well and we could see the rally continuing further, if it is able to stay above the Rs 3,180 level.

NIIT
The NIIT stock continued to move in an extremely narrow range of Rs 12.40 during the course of the week, touching an intra-day high of Rs 145.50 on August 8 and an intra-day low of Rs 133.10 on August 9. If it falls below the Rs 132 level, it could fall further to test the Rs 122 level.

Satyam Computers
It moved in a narrow range of Rs 17.35 during the course of the week, touching an intra-day low of Rs 195.65 on August 8 and an intra-day high of Rs 213 on August 13. The stock faces resistance at the Rs 215 level. If it moves above this level it could touch the Rs 224 level.

Wipro
The Wipro stock moved in an extremely narrow range of Rs 64.85 during the course of the week, touching an intra-day low of Rs 1,140 on August 8 and an intra-day high of Rs 1,204.85 on August 12. The stock moved in a range bound manner.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 19/08/2002

Nasdaq

The Nasdaq witnessed a minor rally on expectations of another Fed rate cut, but the rally was short lived, since the Federal Reserve stayed away from any rate cut. The Nasdaq would need some kind of positive developments or some positive news to trigger a fresh rally or boost sentiment for a rally to take place, which have been spoilt by future earnings warnings and several other incidents of corporate malfeasance. The Nasdaq is likely to seek support at the 1225 level. On the upside the Nasdaq faces resistance at the 1350 level.