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Markets rangebound, ahead of Budget
Deepak Sahijwala & Sanjay R. Bhatia
With just a week to go before the next budget is to be presented, the markets
continue to trade in a range bound trend, with occasional bouts of a corrective
rally. Naturally, volumes recorded continue to remain moderate, as the bourses
witness stock-specific action with traders and speculators taking positions
in a few auto, cement, metal and tech stocks. Incidentally, FIIs were net buyers
on the bourses though their purchases have remained extremely low. Mutual funds
were also net buyers during the course of the week.
Technically, the markets have continued to languish. Even though the benchmark
BSE Sensex was able to move above its resistance level of 4860 level, it was
unable to sustain itself due to profit booking. Meanwhile all eyes are on the
Union Budget, to be presented on July 8, which is likely to decide the future
trend of the markets. Volumes are likely to remain moderate with occasional
bouts of intermediate flare-ups. On the upside, the benchmark BSE Sensex is
likely to witness resistance at the 4860 level, followed by the 5000 level.
On the downside, the 4648 level is likely to act as an important support level,
and if it falls below this level then the Sensex is likely to test the 4134
level.
CMC
The CMC stock has moved in a range of Rs 27.75, touching an intra-day high of
Rs 468.75 on June 29 and an intra-day low of Rs 441 on June 29. 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, and if it falls below this level
it is likely to test the Rs 396 level.
HCL Technologies
The HCL Tech stock has moved in a range of Rs 20.10, touching
an intra-day high of Rs 313.30 on June 29 and an intra-day low of Rs 293.20
on July 1. On the upside the Rs 310 level is likely to act as a resistance level,
if it succeeds to move and sustain above this level it is likely to test the
Rs 334. On the downside the Rs 267 level is an important support level.
NIIT
NIIT has moved in a range of Rs 22.90, touching an intra-day
low of Rs 145 on June 28 and an intra-day high of Rs 167.90 on June 30. On the
upside, the Rs 166 level is likely to act as a resistance level, and if it moves
and sustains above this level it is likely to test the Rs 174 level. On the
downside, the Rs 148.90 level is an important support level but if it falls
below this level it is likely to decline to the Rs 135 level.
Polaris Software
Polaris has moved in a range of Rs 19.20 touching an intra-day
low of Rs 131.25 on June 28 and an intra-day high of Rs 150.45 on June 29. On
the upside, the Rs 148 level is likely to act as a resistance level, and if
it moves and sustains above this level it is likely to test the Rs 160 level.
On the downside, if Polaris fails to stay above its support level of Rs 130
then it is likely to decline to test the Rs 118 level.
Satyam Computers
Satyam has moved in a range of Rs 13.55, touching an intra-day
high of Rs 317.70 on June 29 and an intra-day low of Rs 304.15 on June 30. 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, and if it falls
below this level it is likely to test the Rs 256 level.
Wipro
Wipro has moved in a range of Rs 34, touching an intra-day high of Rs 564 on
June 28 and an intra-day low of Rs 526.10 on July 1. On the upside, it is likely
to face resistance at the Rs 558 level, and if it moves and sustains above this
level it is likely to test the Rs 587 level. On the downside, the Rs 512 level
is an important support level.
| The Nasdaq has moved in an extremely
rangebound manner despite the Federal Reserve increasing US interest rates
by 25 basis points, which was on expected lines but has also indicated a
gradual increase in interest rates in a phased manner in the future. As
we had indicated in our last issue, the Nasdaq is likely to test the 2050
level in few trading sessions and if it moves and sustains above this level
it is likely to test the 2080 level. On the downside, the 1960 level is
likely to act as an important support level. |
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