Poll results will decide future course of markets

Deepak Sahijwala & Sanjay R Bhatia

Lacklustre and rangebound trading due to the ongoing Lok Sabha elections has been the story at the bourses. However, an intermediate broad-based rally was triggered on April 21, cued by exit polls giving the ruling coalition a majority. However, volumes continued to remain subdued. Traders and speculators were found actively building positions in auto, steel and index heavyweights. Incidentally, FIIs along with the mutual funds were net buyers during the week.

Technically, the markets are likely to display a rangebound trend till the final outcome of the elections is known. However, intermediate rallies would be seen if the exit polls give a favourable picture after the second phase of polling. Overall, sentiment continues to remain cautiously optimistic. Further, stock-specific action may be seen due to the ongoing earnings season. The markets could witness intermediate bouts of volatility next week due to the exit polls and also settlements in the derivative segment. It is important that the Sensex moves and sustains above the 5935 level for it to test the psychologically important 6000 level. On the downside, the 5550 level is likely to act as a support level.

CMC

The CMC stock has moved in a range of Rs 31.55, touching an intra-day low of Rs 532.15 on the April 20 and an intra-day high of Rs 551 on April 22. On the upside, it is likely to test the Rs 560 level, if it continues to sustain above the Rs 524 level. On the downside, the Rs 468 level is likely to act as an important support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 15.30, touching an intra-day high of Rs 295.30 on April 19 and an intra-day low of Rs 280 on April 21. On the upside, it is likely to test the Rs 325 level, if it moves and sustains above the Rs 294 level. On the downside, the Rs 262 level is an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 130.90, touching an intra-day low of Rs 5,317.10 on April 19 and an intra-day high of Rs 5,448 on April 22. On the upside, it is likely to face resistance at the Rs 5,651 level and later at the psychologically important Rs 6,000 level. On the downside, the Rs 4,938 level is an important support level.

NIIT

NIIT has moved in a narrow range of Rs 10.50, touching an intra-day high of Rs 199 on April 19 and an intra-day low of Rs 188.50 on April 21. On the upside, the Rs 208 level is likely to act as a resistance level. On the downside, the Rs 180 level is likely to act as an important support level.

Polaris Software

Polaris has moved in a range of Rs 10.25, touching an intra-day low of Rs 205.70 on April 19 and an intra-day low of Rs 195.45 on April 19. On the upside, if Polaris moves and sustains above the Rs 201 level, then it is likely to test the Rs 211 level. On the downside, Rs 176 level is an important support level.

Satyam Computer

Satyam has moved in a range of Rs 21.45, touching an intra-day low of Rs 315.05 on April 21 and an intra-day high of

Rs 336.50 on April 21. On the upside, it is likely to face resistance at the Rs 342 level. On the downside, the Rs 290 level is likely to act as an important support level.

Wipro

Wipro has moved in a range of Rs 56.70, touching an intra-day low of Rs 1,576.10 on April 19 and an intra-day high of Rs 1,632.80 on April 22. On the upside, it is likely to face resistance at the Rs 1,632 level, and if it manages to move and sustain above this level it is likely to test the 1,731 level. On the downside, the Rs 1,360 level is an important support level.

Nasdaq

The Nasdaq has continued to move in a rangebound trend on the back of earnings season. Incidentally, it continues to see-saw around the psychologically important 2000 level. Now, it is important that Nasdaq continues to sustain above the 2000 level for it to test the 2091 level. On the downside, the 1994 level is likely to act as an important support level.