Volumes low, markets volatile

Deepak Sahijwala & Sanjay R Bhatia

Market sentiment continues to be negative due to concerns on the transaction tax implementation and its implications, and is likely to remain volatile. Volumes recorded have been low-to-modest as traders and speculators stayed away from the market in protest against the imposition of transaction tax, which has affected the liquidity on the bourses. FIIs have remained net buyers during the course of the week, although their purchases have remained limited. However, mutual funds have been buyers, supporting the markets at a lower levels.

Technically, the markets have continued to languish in a range bound trend. Concerns over the deficient monsoon have added to the woes of the markets. Further, they are also likely to take cues from crude prices, which have once again spiked up. However, stock-specific action would be seen as the Q1 results season unfolds. So far, tech companies have declared good quarterly numbers, and market interest is likely to increase in the coming days. Now it is important that on the upside, the benchmark BSE Sensex moves and sustains above the 5000 level; if it does it is likely to test the 5123 level. On the downside, the 4860 level is likely to act as an important support level, but if it falls below this it is likely to test the 4648 level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 13.50, touching an intra-day low of Rs 292 on July 12 and an intra-day high of Rs 305.50 on July 14. On the upside, the Rs 300 level is likely to act as a resistance level, and if it succeeds and sustains above this level it is likely to test the Rs 313 level. On the downside, Rs 287 is an important support level, but if it moves below this level it is likely to test the Rs 274.60 level.

Infosys Technologies

Infosys has moved in a range of Rs 84.65, touching an intra-day low of Rs 1,364.25 on July 12 and an intra-day high of Rs 1,448.90 on July 15. On the upside, Rs 1,430 is likely to act as a resistance level, and if it succeeds in moving above this it is likely to test the Rs 1,472 level. On the downside, Rs 1,352 is an important support level.

Polaris Software

Polaris has moved in a range of Rs 14.70 touching an intra-day low of Rs 140.10 on July 12 and an intra-day high of Rs 154.80 on July 15. On the upside, if Polaris can sustain above the 149 level it is likely to test the Rs 157 level.

Satyam Computer

Satyam has moved in a range of Rs 21.80, touching an intra-day low of Rs 306 on July 12 and an intra-day high of Rs 327.80 on July 14. On the upside, it is likely to face resistance at the Rs 328.30 level, and if it moves and sustains above this it is likely to test the Rs 334 level. On the downside, Rs 305 is likely to act as an important support level.

Wipro

Wipro has moved in a range of Rs 34.65, touching an intra-day low of Rs 492 on July 13 and an intra-day high of Rs 526.65 on July 15. On the upside, it is likely to face resistance at the Rs 532 level, and if it moves and sustains above this level it is likely to test the Rs 556 level. On the downside, Rs 486 is an important support level.