The markets witnessed a correction on the back of disappointing results declared over the week, particularly by Satyam, and due to apprehensions of a US-Iraq war and the consequent increase in crude oil prices. Traders and speculators were unwinding their positions in banking and PSU stocks. FIIs continued to remain net buyers. However, selling by mutual funds has negated FII buying.

Technically, the anticipated correction finally materialised. The benchmark BSE Sensex, however, failed to find support at the 3264 level and saw a further downslide. It is likely to remain rangebound and a sharp downside is likely to occur due to the negative news. If that happens, the Sensex is likely to find support at the 3188 level. On the upside, the 3357 level would act as an important resistance level.

CMC
The stock moved in a range of Rs 87.35, touching an intra-day high of Rs 589.95 on January 23 and an intra-day low of Rs 502.60 on January 29. Selling continued on the CMC stock due to profit booking and more so because SEBI has removed it from the derivative segment. The stock is likely to find support at the Rs 506 level.

Digital GlobalSoft
It moved in a range of Rs 82.90, touching an intra-day high of Rs 579.40 on January 23 and intra-day low of Rs 496.50 on January 27. As indicated, it fell below the Rs 500 level, after it failed to stay above the Rs 577.10 level. It is likely to find support at the Rs 480 level. The likelihood of a merger between HP and Digital could affect sentiment on this stock.

HCL Technologies
The HCL Tech stock moved in a range of Rs 21.95, touching an intra-day high of Rs 169.30 on January 24 and an intra-day low of Rs 147.35 on January 27. Even though it failed to stay above the Rs 157.60 level, the downtrend was not sharp and it is consolidating at present levels. It also formed a positive divergence pattern and if it can sustain at the present levels, it is likely to bottom out soon.

Infosys Technologies
It moved in a range of Rs 335.10, touching an intra-day high of Rs 4,515.10 on January 24 and an intra-day low of
Rs 4,180 on January 29. However, it has failed to stay above the Rs 4,266 level and is likely to test the Rs 4,137 level. On the upside, the Rs 4,620 level is an important resistance level.

NIIT
It moved in a range of Rs 35.30, touching an intra-day high of Rs 160.40 on January 23 and an intra-day low of
Rs 125.10 on January 27. However, it failed to find support at the Rs 150 level and as had indicated in the last issue, it tested the Rs 133 level. Even though it has fallen below this level, it managed to bounce back. On the upside, the Rs 150 level is likely to act as a resistance point.

Satyam Computers
It moved in a range of Rs 37.50, touching an intra-day high of Rs 252.70 on January 23 and an intra-day low of
Rs 215.20 on January 29. The weakness continued on the Satyam stock, post Q3 numbers. It is important that the stock stays above the Rs 214 level, if it moves below this level, it is likely to test the Rs 193 level.

Wipro
It moved in a range of Rs 144.75, touching an intra-day high of Rs 1,501 on January 23 and an intra-day low of
Rs 1,356.25 on January 27. However, it failed to stay above the Rs 1,500 level and tested the Rs 1,367 level. On the downside, the Rs 1,356 level is an important support level.

View the STRATSTAR FUND WIZARD BUY/SELL REPORT FOR 03/02/2003

Nasdaq

The Nasdaq continued to remain weak, amidst occasional bouts of correction. The likelihood of the US declaring war on Iraq continues to affect sentiment. The Nasdaq has not breached the crucial support level of 1319, which is a positive sign. The 1394 level is an important resistance level. If it moves above this level, it is likely to fill the gap between the 1402-1420 levels. The 1319 level continues to remain an important support level. If it breaches this level, it is likely to test the 1272 level.