Strong FII inflows continue

Deepak Sahijwala & Sanjay R Bhatia

The markets have continued to rise on the back of strong FII inflows, which have shown no sign of abating. Traders and speculators continued to build positions in textile, tech and oil stocks. Moreover, mutual funds also continued to remain net buyers during the course of the week.

Technically, even though the markets have witnessed intermediate bouts of intra-day corrections, this is not enough. It is important that the markets should witness a broad-based correction and consolidate, that would be healthy for the markets and would help the benchmark BSE Sensex to sustain higher and also test new peaks. On the upside, if the Sensex manages to sustain above the 5668 level, then it is likely to test the 5789 level. On the downside, the 5131 level is an important support level.

CMC

The CMC stock has moved in a range of Rs 184.35, touching an intra-day low of Rs 540.65 on December 18 and an intra-day high of Rs 725 on December 22. The news of a stock split saw CMC witness excess speculative activity, but the decision by the CMC board not to proceed with the stock split has seen CMC cool off a bit. On the downside, the Rs 547 level is an important support level. If CMC moves and sustains above Rs 574 level it is likely to test the Rs 600 level.

On the upside, the Rs 666 level is likely to act as a resistance level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 16, touching an intra-day low of Rs 279.90 on December 18 and an intra-day high of Rs 295.90 on December 23. On the upside, if it can move and sustain above the Rs 291 level, it is likely to test the Rs 320 level. On the downside, Rs 269 is an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 368.80, touching an intra-day low of Rs 5,106.20 on December 18 and an intra-day high of Rs 5,475 on December 23. If it can move and sustain above the Rs 5,489 level, it is likely to test the Rs 5,939 level. On the downside, the Rs 4,905 level is likely to act as an important support level.

NIIT

NIIT has moved in a narrow range of Rs 15.25, touching an intra-day low of Rs 248.40 on December 19 and an intra-day high of Rs 263.65 on December 24. On the upside it is likely to face resistance at the Rs 272 level. On the downside the Rs 232 level is an important support level

Polaris Software

Polaris has moved in a range of Rs 22, touching an intra-day low of Rs 216 on December 18 and an intra-day high of Rs 238 on December 24. It is likely to face resistance at the Rs 250 level. On the downside, the Rs 201 level is an important support level.

Satyam Computers

Satyam has moved in a narrow range of Rs 14.75, touching an intra-day low of Rs 349.15 on December 24 and an intra-day high of Rs 363.90 on December 24. On the upside, if it can sustain above the Rs 358 level, it is likely to test the Rs 425 level. On the downside, the Rs 312 level is an important support level.

Wipro

Wipro has moved in a range of Rs 95, touching an intra-day low of Rs 1,650 on December 18 and an intra-day high of Rs 1,745 on December 24. On the upside, if it can move and sustain above the Rs 1,728 level, it is likely to test the Rs 1,836 level. On the downside, the Rs 1,508 level could act as an important support level.

Nasdaq

The Nasdaq has witnessed a steady rally, amidst occasional bouts of minor corrections. On the upside, if the Nasdaq can sustain above the 1969 level, it is likely to again test the psychologically important 2000 level, and perhaps even cross it. On the downside, the 1881 level is an important support level.