The streak of good Q2 numbers ended as HCL Tech, CMC and a few Old Economy stocks declared disappointing numbers. The Street has since seen a sell-off on these counters. The benchmark BSE Sensex has again fallen below the important psychological level of 3000. Traders and speculators were seen unwinding their speculative positions in tech and index heavyweight stocks, FIIs continued to remain net sellers on the bourses, which does not augur well for sentiment. Mutual funds too were net sellers during this week, albeit their sales were limited.

The BSE Sensex was unable to sustain above the 3000 level and has since fallen to touch an intra-day low of 2941.29 on October 23. It is now important that it does not fall below the 2916 level, else we could see a downslide of more than 100 points. On the upside, the Sensex would continue to face stiff resistance at the 3000 level.

Presently, the markets need positive triggers for the Sensex to move above the 3000 level and to sustain above, it and these could be the yet-to-be announced good Q2 numbers, coupled with the much hoped for positive developments on the disinvestment front.

CMC
The CMC stock moved in a narrow range of Rs 38.40 over the week, touching an intra-day high of Rs 563.40 on October 22 and an intra-day low of Rs 525 on October 23. The disappointing Q2 numbers declared by CMC saw a sell-off on the counter, as traders and speculators unwound their long positions. The downward trend is likely to continue for a few more trading sessions. It is likely to find a support at the Rs 440 level.

Digital GlobalSoft
The Digital stock continued to move in an extremely narrow range of Rs 37 over the week, touching an intra-day high of Rs 583.60 on October 18 and an intra-day low of Rs 546.60 on October 17. The stock continues to suffer due to lack of any speculative activity. It is likely to remain lacklustre and move in a narrow range-bound trend. On the downside, it is likely to find support at the Rs 515 level.

HCL Technologies
The HCL Tech stock moved in a range of Rs 56.75 over the week, touching an intra-day high of Rs 221.40 on October 18 and an intra-day low of Rs 164.65 on October 23. Extremely disappointing results saw the HCL Tech stock witness a sell-off. Traders along with institutions were seen selling their outstanding long positions. The stock is likely to witness a minor correction and then move in a range-bound manner.

Infosys Technologies
The Infosys stock moved in a range of Rs 175.90 over the week, touching an intra-day low of Rs 3,722.10 on October 17 and an intra-day high of Rs 3,898 on October 18. The stock took a breather after last week’s rise, due to the negative results announced by a few infotech companies. On the downside, it is not likely to fall below the Rs 3,538 level. On the upside if it can cross the Rs 3,907 level it will move closer to the Rs 4,200 level.

NIIT
The NIIT stock moved in a range of Rs 15.85 over the week, touching an intra-day high of Rs 145.40 on October 18 and an intra-day low of Rs 129.55 on October 23. As we had indicated in our last issue, NIIT has moved above the Rs 142 level and is likely to continue to move in a range-bound trend. On the upside, the NIIT stock continues to face resistance at the Rs 145 level. On the downside, it is unlikely to fall below the Rs 111 level.

Satyam Computers
The Satyam stock continued to move in a narrow range of Rs 16.30 over the week, touching an intra-day low of Rs 213.10 on October 17 and an intra-day high of Rs 229.40 on October 18. The Q2 numbers of Satyam were marginally better than the street’s expectation. It is likely to move in a range-bound trend. On the upside, it is likely to face resistance at the Rs 229.40 level. On the downside, it is likely to find support at the Rs 210 level.

Wipro
The Wipro stock moved in a narrow range of Rs 90.35 over the week, touching an intra-day high of Rs 1,483.90 on October 18 and an intra-day low of Rs 1,393.55 on October 21. On the upside, it is likely to face resistance at the Rs 1,498 level and on the downside it is likely to find support at the Rs 1,200 level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 28/10/2002

Nasdaq

The Nasdaq continued its upward trend during the course of the week on the back of encouraging Q3 numbers declared by a few corporates. It touched the 1314 level after moving above the 1283 level. Now it is important that no negative news on the earnings side unfold, since it needs to consolidate its gains for this upward trend to sustain. On the upside, the Nasdaq is likely to face resistance at the 1348 level. On the downside, it is likely to find support at the 1223 level.