Rangebound trend continues amidst low volumes

Deepak Sahijwala & Sanjay R Bhatia

The markets have witnessed an uptrend on the back of positive FII inflows and reassurances from the finance minister. However, volumes have continued to remain dismal and lacklustre, which is a negative sign. Traders and speculators were seen buying into defensive stocks like pharma and tech. Incidentally, FIIs were net buyers after a four-week selling spree. Mutual funds on the other hand, continued to remain net sellers during the course of the week.

FII buying has boosted overall sentiment on the bourses and has helped the markets rally. Now, it is important that the rally sustains at higher levels, as profit booking at higher levels could erase the gains. Meanwhile, the markets would continue to take cues from crude prices, which have started to fall marginally, global stock market movements and the progress of the monsoon. Overall, the trend of the market would continue to remain range bound till the announcement of the budget. On the upside, the Sensex is likely to face resistance at the 5400 level. On the downside, the 4648 level is likely to act as an important support level.

CMC

The CMC stock has moved in a range of Rs 61.90, touching an intra-day low of Rs 430 on May 31 and an intra-day high of Rs 491.90 on June 3. On the upside, it is likely face resistance at the Rs 524 level. On the downside, Rs 425 is likely to act as a support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 30.10, touching an intra-day high of Rs 315.35 on June 1 and an intra-day low of Rs 285.25 on June 3. HCL Tech has failed to sustain above the Rs 327 level due to profit booking at higher levels. On the upside, it is likely face resistance at the Rs 327 level. On the downside, the Rs 267 level is an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 485, touching an intra-day low of Rs 4,900 on May 31 and an intra-day high of Rs 5,385 on June 3. On the upside, it is likely to face resistance at Rs 5,651. On the downside, the Rs 4,418 level is an important support level.

NIIT

NIIT has moved in a range of Rs 17, touching an intra-day low of Rs 146 on May 31 and an intra-day high of Rs 163 on June 3. On the upside, the Rs 174 level is likely to act as a resistance level and if it manages to move and sustain above this level, it is likely to test the

Rs 204 level. On the downside, Rs 150 is likely to act as an important support level, if it falls below this level it is likely to test the Rs 135 level.

Polaris Software

Polaris has moved in a narrow range of Rs 13.65 touching an intra-day low of Rs 127.25 on May 31 and an intra-day high of Rs 140.90 on June 3. On the upside, the Rs 156 level is likely to act as a resistance level and if it succeeds in moving and sustaining above this level it is likely to test the Rs 171 level. On the downside, the Rs 107 level is an important support level.

Satyam Computers

Satyam has moved in a range of Rs 30.80, touching an intra-day low of Rs 296.05 on May 31 and an intra-day high of Rs 326.85 on June 3. 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 122.60, touching an intra-day high of Rs 1,564.70 on June 1 and an intra-day low of Rs 1,442.10 on June 3. On the upside, the stock 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, Rs 1,360 is an important support level.

Nasdaq

The Nasdaq has witnessed lacklustre trading during the week. However, it has managed to stay above its 200-day moving average, which is a positive sign. Rising crude prices continue to remain a cause for concern and could affect any future uptrend. On the upside, it is likely to face resistance at the 1990 level and if it manages to move and sustain above this level it is likely to test the 2008 level. On the downside, 1881 is likely to act as an important support level.