Profit booking at higher levels erodes gains

Deepak Sahijwala & Sanjay R Bhatia

The markets have continued to remain extremely volatile and choppy. Traders and speculators however continued to build positions in Old Economy stocks, while booking profits in index heavyweights and tech stocks ahead of the settlement in the F&O segment. The weakness on the Nasdaq also affected sentiment on tech stocks. Meanwhile, FIIs have continued to remain net buyers along with mutual funds, but have also been booking profits at higher levels.

Even though the market witnessed a sharp rally from the 5567.68 level to touch an intra-day high of 6030 on January 28, it failed to sustain at these levels due to profit booking at higher levels. Further, buying at higher levels and slowing down of FII inflows is keeping the markets nervous. On the upside, the 6064 level is likely to act as a resistance level. On the downside, the 5593 level is likely to act as a crucial support level.

CMC

The CMC stock moved in a range of Rs 53.45, touching an intra-day high of Rs 629 and an intra-day low of Rs 575.55 on the January 29. On the upside, the Rs 635 level is likely to act as a resistance level. On the downside, if CMC falls below the Rs 575 it is likely to test the Rs 547 level.

HCL Technologies

The HCL Tech stock moved in a range of Rs 27.80, touching an intra-day high of Rs 326.95 on January 27 and an intra-day low of Rs 299.15 on January 28. On the upside, it continues to face resistance at the Rs 325 level. On the downside, if HCL Tech falls below the Rs 298 level, it is likely to fall further to test the Rs 270 level.

Infosys Technologies

Infosys moved in a range of Rs 601, touching an intra-day high of Rs 5,620 and an intra-day low of Rs 5,019 on January 27. On the upside, it is likely to face resistance at the Rs 5,887 level. On the downside, if Infosys falls below the Rs 5,174 level it is likely to test the Rs 4,988 level.

NIIT

NIIT moved in a range of Rs 35.55, touching an intra-day high of Rs 248.55 and an intra-day low of Rs 213 on January 27. On the upside, the Rs 246.55 level is likely to act as a resistance level. On the downside, if NIIT falls below the Rs 216 level it is likely to test the Rs 190 level.

Polaris Software

Polaris moved in a range of Rs 25.55, touching an intra-day high of Rs 211.35 on January 27 and an intra-day low of

Rs 185.80 on January 29. On the upside, the Rs 211 level is likely to act as a resistance level. On the downside, if Polaris falls below the Rs 178 level, then it is likely to test the Rs 148 level.

Satyam Computers

Satyam moved in a range of Rs 36.55, touching an intra-day high of Rs 359 on January 27 and an intra-day low of Rs 322.45 on January 29. On the upside, it is likely to face resistance at the Rs 342 level. On the downside, if it falls below the Rs 305, it is likely to fall further to test the Rs 270 level.

Wipro

Wipro has moved in a range of Rs 209.85, touching an intra-day high of Rs 1,750 on January 27 and an intra-day low of Rs 1,540.15 on January 29. On the upside, it is likely to face resistance at the Rs 1,735 level.

On the downside, the Rs 1,620 level is an important support level, and if it falls below this level, it is likely to test the Rs 1,508 level.