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Markets witness pull-back rally
Deepak Sahijwala & Sanjay R Bhatia
The markets witnessed a pull-back rally on the back of broadbased buying, amidst
high volatility cued by the F&O segment settlement. The volumes recorded
continued to remain moderate. Traders and speculators were seen taking fresh
positions in auto, index heavyweights and tech stocks. FIIs continued to remain
net buyers, buying at lower levels. However, mutual funds were net sellers during
the course of the week to meet redemption pressures from high net worth individuals
ahead of year-end considerations and dividend stripping.
Technically, the pull back rally saw the benchmark BSE Sensex move above the
5500 level. Now it is important that follow-up buying is witnessed at higher
levels for the Sensex to test the all-important 5550 level. If the benchmark
BSE Sensex moves and sustains above the 5550 level initially for four trading
days followed by 12 trading days, then a sustainable rally is in the offing.
The Q4 results to be declared early next month could act as triggers for the
markets ahead of the elections, which would otherwise keep the markets uncertain.
Stock specific action would be witnessed. On the downside the 5130 level is
an important support level for the benchmark BSE Sensex. On the upside the 5550
level is a crucial resistance level. On the sectors front, tech stocks could
continue to display weakness on the back of the surging rupee which is likely
to erode their revenues and would add further pressure to their already-stretched
bottomlines.
CMC
The CMC stock has moved in a range of Rs 59.60, touching
an intra-day high of Rs 519.60 on March 22 and an intra-day low of Rs 460 on
March 25. CMC failed to take support at the Rs 550 level and has witnessed a
further fall. On the downside, the Rs 428 level is likely to act as an important
support level. On the upside the Rs 550 level is likely to act as a resistance
level.
HCL
The HCL Tech stock has moved in a range of Rs 36.45, touching
an intra-day low of Rs 233.55 on March 23 and an intra-day high of Rs 270 on
March 25. On the downside, the Rs 229 level is likely to act as an important
support level. On the upside it is likely to face resistance at the Rs 280 level.
Infosys
Infosys has moved in a range of Rs 606.65, touching an intra-day
low of Rs 4,993.35 on March 24 and an intra-day high of Rs 5,600 on March 25.
On the upside, it is likely to face resistance at the Rs 5,330 level. On the
downside the Rs 4,836 level is an important support level; if Infosys falls
below this level it is likely to test the Rs 4,626 level.
NIIT
NIIT has moved in a narrow range of Rs 11, touching an intra-day low of Rs 172.50
on March 23 and an intra-day high of Rs 183.50 on March 23. On the upside, the
Rs 180 level is likely to act as a resistance level. If it moves and sustains
above this level it is likely to test the Rs 191.50 level. On the downside,
if NIIT falls below the Rs 161 level it is likely to test the Rs 138 level.
Polaris
Polaris has moved in a range of Rs 31.20 touching an intra-day low of Rs 179.55
on March 23 and an intra-day high of
Rs 210.75 on March 25. On the upside the Rs 211 level is likely to act as a
resistance level. On the downside Rs 176 is an important support level.
Satyam
Satyam has moved in a range of Rs 28.40, touching an intra-day
low of Rs 284.50 on March 23 and an intra-day high of Rs 304.70 on March 22.
On the upside it is likely to face resistance at the Rs 321 level. On the downside
if it falls below the Rs 290 level it is likely to fall further to test the
Rs 270 level.
Wipro
Wipro has moved in a narrow range of Rs 79.80, touching an
intra-day high of Rs 1,439.80 on March 22 and an intra-day low of Rs 1,360 on
March 24. On the upside it is likely to face resistance at the Rs 1,632 level.
On the downside the Rs 1,360 level is an important support level; if it falls
below this it is likely to test the Rs 1,225 level.
| Weakness continued to prevail on the Nasdaq on the
back of security concerns. A further weakness was witnessed as it failed
to find support at the 1951 level. Incidentally, the Nasdaq is close to
its 200-day moving average and now it is important that it continues to
stay above this level. In case it falls below its 200 day moving average,
it is likely to slide further and test the 1841 level. |
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