Markets flat, trend rangebound

Deepak Sahijwala & Sanjay R Bhatia

The markets have witnessed an extremely lacklustre and flat trend. Volumes recorded have continued to remain moderate to low. Traders and speculators were seen taking stock-specific positions in the auto and tech sectors. Incidentally, FIIs continued to remain net buyers on the bourses, albeit their purchases have remained low. Mutual funds however, continued to remain net sellers during the course of the week.

The markets have continued to languish in an extremely range bound trend. The benchmark BSE Sensex faces selling pressure above the 5000 level. Now, it is important that the Sensex moves and sustains above that level for the rally to gain momentum. Overall, the trend of the markets would continue to remain range bound and stock-specific action will be seen. On the upside, the Sensex is likely to face resistance at the 5400 level. On downside, the 4648 level is likely to act as an important support level.

CMC

The CMC stock has moved in a range of Rs 24.95, touching an intra-day high of Rs 475 on June 9 and an intra-day low of Rs 450.05 on June 9. On the upside, it is likely face resistance at the Rs 495 level. On the downside, the Rs 425 level is likely to act as a support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 17.45, touching an intra-day high of Rs 315 on June 8 and an intra-day low of Rs 297.55 on June 9. On the upside, the Rs 310 level is likely to act as a resistance level. On the downside, Rs 267 level is an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 190.90, touching an intra-day high of Rs 5,312 on June 7 and an intra-day low of Rs 5,121.10 on June 8. On the upside, the Rs 5,651 is likely to act as a resistance level. On the downside, the Rs 4,418 level is an important support level.

NIIT

NIIT has moved in a range of Rs 11.55, touching an intra-day low of Rs 153.85 on June 8 and an intra-day high of Rs 165.40 on June 10. On the upside, the Rs 174 level is likely to act as a resistance level. On the downside, the Rs 150 level is likely to act as an important support level and 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 11.30 touching an intra-day low of Rs 132.30 on June 8 and an intra-day high of Rs 143.60 on June 10. 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 130 level is an important support level.

Satyam Computers

Satyam has moved in a range of Rs 22, touching an intra-day high of Rs 326 on June 8 and an intra-day low of Rs 304 on June 10. On the upside, it is likely to face resistance at the Rs 320 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 108.85, touching an intra-day high of Rs 1,574 on June 7 and an intra-day low of Rs 1,465.15 on June 7. On the upside, it is likely to face resistance at the Rs 1,539 level. On the downside, Rs 1,350 level is an important support level.

NASDAQ

As we had indicated in our last issue, the Nasdaq was able to test the 2008 level, after crossing the 1990 level. In fact, the Nasdaq was able to move above the psychologically important 2000 level on the back of softening crude prices. But this was short lived, as it could not sustain above the 2000 level on fears of a rise in interest rates . Along with this the appreciating crude prices have once again affected sentiment. Now, it is important that it moves and sustains above the 2008 level for it to test the 2050 level. On the downside, the 1881 level is likely to act as an important support level.