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Bull run hinges on election outcome
Deepak Sahijwala & Sanjay R Bhatia
The markets have continued to remain extremely volatile, see-sawing on cues
generated by the different phases of exit polls. However, volumes continued
to remain low and subdued. Traders and speculators were seen abstaining from
taking major long positions. Incidentally, FIIs were net sellers during the
course of the week and have remained indifferent to the Indian bourses due to
uncertainty of the poll outcome. Moreover, mutual funds were also marginal net
sellers but were seen supporting the markets at lower levels.
Technically, the markets would continue to remain volatile, but it is important
that volumes pick up for any rally to be significant. Incidentally, market sentiment
has improved on the back of the third exit polls and gains have been registered
on the bourses. Now, it is important that the fourth stage exit polls are also
positive followed by the actual results to be declared on May 13, for any rally
to sustain, otherwise the markets could fall sharply. Meanwhile, the markets
would continue to witness stock-specific action. Now, it is important that Sensex
moves and sustains above the 5838 level for it to test the 5935 level. On downside,
the 5521 level is likely to act as a crucial support level.
HCL Technologies
The HCL Tech stock has moved in a range of Rs 24.35, touching an intra-day low
of
Rs 270.65 on May 3 and an intra-day high of Rs 295 on May 6. On the upside,
it is likely face resistance at the Rs 294 level, if it moves and sustains above
this level it is likely to test the Rs 310 level.
On the downside, the Rs 262 level is an important support
level.
Infosys Technologies
Infosys has moved in a range of Rs 416.600, touching an intra-day low of Rs
5,071.10 on May 3 and an intra-day high of Rs 5,487.70 on May 6. On the upside
it is likely to face resistance at the Rs 5,651 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 range of Rs 18, touching an intra-day
low of Rs 156 on May 3 and an intra-day high of Rs 174 on May 6. On the upside,
the Rs 204 level is likely to act as a resistance level. On the downside, the
Rs 152 level is likely to act as an important support level.
Polaris Software
Polaris has moved in a range of Rs 31.30 touching an intra-day low of Rs 146.10
and an intra-day high of Rs 177.40 on the same day on May 3. 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 25.50, touching an intra-day low of Rs 305.50
on May 3 and an intra-day high of Rs 331 on May 6. 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 100.90, touching an intra-day low of Rs 1,529.05
on May 3 and an intra-day high of
Rs 1,629.95 on May 6. 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 Rs 1,731 level. On the downside the Rs 1,360
level is an important support level.
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| The Nasdaq continues to languish below the 2000 level.
The overall trend has continued to remain cautious on back of the Federal
Reserve raising the interest rates. The Federal Reserve has not raised the
interest rates and has indicated that the same would be raised in a steady
manner. This is likely to see the Nasdaq rally. On the upside, if the Nasdaq
moves and sustains above the 2000 level it is likely to test the 2050 level.
On the downside, the 1994 level is likely to act as an important support
level. |
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