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Cautiousness and uncertainty prevail in markets
Deepak Sahijwala & Sanjay R Bhatia
THE markets have continued to remain extremely volatile with
a negative bias on the back of poll results and negative cues from global markets.
Volumes recorded continued to remain low. The markets reacted after declining
over 200 points in the first few minutes on May 13, and then recovered to enter
into positive territory once it was clear that the Congress would come to power.
Traders and speculators were seen unwinding their positions on the back of the
results of the AP assembly elections, and also ahead of the declaration of the
Lok Sabha poll results. FIIs continued to remain heavy sellers during the week,
influenced by the uncertainty of the poll results. However, mutual funds were
net buyers and were seen supporting the markets at lower levels.
Technically the markets will continue to remain volatile
and choppy till the new government is formed; the composition of the government
will also be important. Apart from the formation of the government, the markets
will also take cues from global markets and rising crude prices which will affect
Indian markets. It is also important that the net inflows of FIIs pick up, and
are on the positive side, since they have remained heavy net sellers during
this month. In a worst-case scenario, the Sensex is likely to test the 4900
level.
CMC
The CMC stock moved in a narrow range of Rs 59, touching
an intra-day high of Rs 520 on May 12 and an intra-day low of Rs 461 on the
same day. It continues to stay below its 200-day moving average, which is a
negative sign. On the upside it is likely to face resistance at the
Rs 524 level; if it moves and sustains above this level it
is likely to test the Rs 556 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 54.15, touching
an intra-day low of Rs 245.45 on May 12 and an intra-day high of Rs 299.60 on
May 13. 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
Infosys has moved in a range of Rs 369, touching an intra-day
high of Rs 5,270 and an intra-day low of Rs 4,901 on May 13. On the upside it
is likely to face resistance at Rs 5,651. On the downside the Rs 4,938 level
is an important support level.
NIIT
NIIT has moved in a range of Rs 24.55, touching an intra-day
high of Rs 166.80 on May 10 and an intra-day low of Rs 142.25 on May 13. On
the upside the Rs 174 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
Polaris has moved in a range of Rs 21.50, touching an intra-day
high of Rs 165.50 on May 10 and an intra-day low of Rs 144 on May 13. On the
upside the Rs 173 level is likely to act as a resistance level. On the downside
the Rs 151 level is an important support level.
Satyam
Satyam has moved in a range of Rs 36.70, touching an intra-day
high of Rs 286.65 on May 11 and an intra-day low of Rs 280.20 on May 13. 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 154.75, touching an intra-day
high of Rs 1,625 and an intra-day low of Rs 1,470.25 on May 13. On the upside
it is likely to face resistance at the Rs 1,632 level; 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.
| The Nasdaq continued to remain range-bound. The expectation
of a rise in interest rates in the near future has kept the Nasdaq cautious
as US inflation rates rise. This along with the rise in crude prices is
likely to affect sentiment further. Incidentally, it has fallen below its
200-day moving average, which is a negative sign, and does not augur well
for the index. Now it is important that the Nasdaq moves above its 200-day
moving average for any rally to sustain. On the upside it is likely to face
resistance at the Rs 1,967 level. On the downside the Rs 1,881 level is
likely to act as an important support level. |
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