Profit booking at higher levels

Deepak Sahijwala and Sanjay R. Bhatia

The markets continued to witness an uptrend, amidst intermediate bouts of correction, due to profit booking. Volumes recorded have improved amidst positive market breadth. Traders and speculators were seen booking profits in mid-cap and tech stocks, while selectively buying in a few index heavyweights, pharma and metal stocks. Incidentally, FII buying has improved during the week and they were net buyers. Mutual funds however were net sellers during the course of the week booking profits at higher levels.

On the domestic front, the high inflation rate continues to remain a sign of concern. Overall, the market sentiment continues to remain cautiously bullish at higher levels, as profit booking is likely to be witnessed. In the meanwhile, markets would continue to witness stock specific action amidst occasional bouts of volatility as the expiry of the F&O segment nears. On the upside, the 5645 level is likely to act as a resistance level. On the downside, the 5535 level is an important support level, followed by the 5420 level.

Infosys Technologies

Infosys has moved in a narrow range of Rs 52.85, touching an intra-day high of Rs 1,681 on September 21 and an intra-day low of Rs 1,628.15 on September 23. On the upside the Rs 1,712 level is likely to act as a resistance level. On the downside, the Rs 1,622 level is an important support level.

Satyam Computers

Satyam has moved in a range of Rs 13.50, touching an intra-day high of Rs 385.70 on September 22 and an intra-day low of Rs 372.20 on September 23. On the upside, the Rs 392 level is likely to act as a resistance level, if it succeeds in moving and sustaining above this level it is likely to test the Rs 416. On the downside, the Rs 361 level is likely to act as a support level.

Wipro

Wipro has moved in a range of Rs 34.30, touching an intra-day low of Rs 577.50 on September 21 and an intra-day high of Rs 611.80 on September 22. On the upside the Rs 616 level is likely to act as a resistance level. On the downside, the Rs 581 level is an important support level.