Pull-back rally unfolds on bourses

Deepak Sahijwala & Sanjay R Bhatia

A pull-back rally continued on the bourses on the back of good Q3 GDP numbers, announced on March 31. However, volumes recorded continued to remain low. Traders and speculators were seen taking positions in auto and index heavyweight stocks, while shying away from tech stocks. Incidentally, FIIs continued to remain net buyers, while mutual funds continued to remain net sellers during the course of the week.

Technically, the benchmark BSE Sensex has managed to sustain over the 5550 level for two trading days. It is important that it stays above it for four trading days, followed by 12 trading days for any sustainable rally to begin. Incidentally, the Q3 GDP figures are likely to see Old Economy stocks rallying, but an appreciating rupee is likely to keep tech stocks weak. The Q4 results of tech companies and the guidance given by market bellwether Infosys on April 13 would decide future trends in IT stocks.

CMC

The CMC stock has moved in a range of Rs 53, touching an intra-day low of Rs 471 on March 30 and an intra-day high of Rs 524 on April 1. The news of CMC becoming a subsidiary of TCS has helped CMC move up. On the upside, the Rs 550 level is likely to act as an important resistance level. On the downside, the Rs 428 level is likely to act as an important support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 26.50, touching an intra-day high of

Rs 269.50 on March 29 and an intra-day low of Rs 243 on March 31. On the upside, it is likely to face resistance at the Rs 255 level. On the downside, the Rs 229 level is likely to act as an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 587.95, touching an intra-day high of Rs 5,324 on March 29 and an intra-day high of Rs 4,736.05 on March 31. 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. On the upside, it is likely to face resistance at the Rs 5,237 level.

NIIT

NIIT has moved in a narrow range of Rs 15.40, touching an intra-day high of Rs 192.70 on March 30 and an intra-day low of Rs 177.30 on March 31. On the upside, the Rs 188 level is likely to act as a resistance level. On the downside, if NIIT falls below the Rs 161 level it is likely to test the Rs 138 level.

Polaris Software

Polaris has moved in a range of Rs 15.90, touching an intra-day high of Rs 189.40 on March 30 and an intra-day low of Rs 173.50 on March 31. On the downside, Rs 176 level is an important support level. If Polaris falls below this level it is likely to test the Rs 157 level. On the upside, the Rs 201 level is likely to act as a resistance level.

Satyam Computer

Satyam has moved in a range of Rs 30, touching an intra-day high of Rs 320 on March 29 and an intra-day low of Rs 290 on March 31. On the downside, if it falls below the Rs 288 level, it is likely to fall further to test the Rs 270 level. On the upside, it is likely to face resistance at the Rs 321 level.

Wipro

Wipro has moved in a narrow range of Rs 83.95, touching an intra-day high of Rs 1,435 on March 29 and an intra-day low of Rs 1,351.05 on March 31. 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 level it is likely to test the Rs 1,225 level.

Nasdaq

The Nasdaq has witnessed a rally, which saw it moving above the psychologically important 2000 level. But profit booking at higher levels saw it slipping below this level. Now, it is important that Nasdaq moves and sustains above the 2000 level, initially for four trading days, followed by 12 trading days, for a sustained rally to take place.