Choppy days ahead

Deepak Sahijwala & Sanjay R Bhatia

The markets have continued to display extreme bouts of volatility and choppiness. Traders and speculators however were seen building positions in some index heavyweight and auto stocks, but continued to book profits on the tech sector due to the weakness on Nasdaq. FIIs continued to remain net buyers along with mutual funds. Both have been seen booking profits at higher levels.

Technically, the benchmark BSE Sensex has displayed rangebound movement amidst high volatility. The markets have broadly moved between 5550 and 5800. It is now important that the Sensex moves and sustains above this range to test the 6000 level for any sustained rally to gain momentum. Moreover, FII buying at higher levels is also important for the bourses to regain the bullish fervour. On the upside, the 6064 level is likely to act as a resistance level. On the downside, the 5550 level is likely to act as a crucial support level; if the Sensex falls below this level it is likely to test the 5130 level.

CMC

The CMC stock has moved in a range of Rs 84.95, touching an intra-day low of Rs 515.05 on February 3 and an intra-day high of Rs 584.70. On the upside, the Rs 635 level is likely to act as a resistance level. On the downside the Rs 547 level is likely to act as a support level.

Infosys Technologies

Infosys has moved in a range of Rs 420.55, touching an intra-day low of Rs 5,123.45 on February 3 and an intra-day high of Rs 5,544. On the upside, it is likely to face resistance at Rs 5,887. On the downside, if Infosys falls below the Rs 5,174 level it is likely to test the Rs 4,988 level.

NIIT

NIIT has moved in a range of Rs 33.35, touching an intra-day high of Rs 220 on February 3 and an intra-day low of Rs 186.65 on February 5. 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 190 level it is likely to test the Rs 180 level.