|
Correction unfolds on bourses
Deepak Sahijwala & Sanjay R Bhatia
A correction has finally unfolded on the bourses with markets witnessing extreme
bouts of panic selling amidst high volatility, on the news of the possibility
of SEBI barring hedge funds from taking the participatory note route of investing
in India. Traders and speculators were seen unwinding their long positions as
exchanges continued to increase margins. Even though FIIs have continued to
remain net buyers on the bourses, their selling has increased. However, mutual
funds continued to remain net buyers. Q3 results from most tech companies have
been good, barring iGATE Global, which posted a Q3 net loss. This augurs well
for the tech sector and hopefully signals an end to the days of margin pressures.
Technically, the sharpness of the fall on the bourses has more to do with panic
selling rather than unwinding of positions, but it seems to have hit sentiment
badly. The markets will continue to display extreme bouts of volatility amidst
stock-specific action. FII buying tapering out is not an encouraging sign for
the markets and could affect sentiment. The benchmark BSE Sensex is unlikely
to fall below the 5500 level. On the upside, the 6064 level is likely to act
as a resistance level.
CMC
The CMC stock moved in a range of Rs 65, touching an intra-day high of Rs 640
on January 20 and an intra-day low of Rs 610.55 on January 22. On the upside,
the Rs 635 level is likely to act as a resistance level. On the downside, it
is likely to test the Rs 547 level.
HCL Technologies
The HCL Tech stock has moved in a range of Rs 48.95, touching
an intra-day high of Rs 326.95 on January 20 and an intra-day low of Rs 278
on January 22. On the upside, it continues to face resistance at the Rs 330
level. On the downside, Rs 269 continues to remain an important support level.
Infosys Technologies
Infosys has moved in a range of Rs 445.80, touching an intra-day
high of Rs 5,620 on January 20 and an intra-day low of Rs 5,174.20 on January
22. On the upside, it is likely to face resistance at the Rs 5,887. On the downside,
the Rs 4,988 level is likely to act as an important support level.
NIIT
NIIT has moved in a range of Rs 48.30, touching an intra-day
high of Rs 253.40 on January 20 and an intra-day low of Rs 205.10 on January
21. On the upside, the Rs 245 level is likely to act as a resistance level.
On the downside, the Rs190 level is likely to act as an important support level.
Polaris Software
Polaris has moved in a range of Rs 65.70, touching an intra-day high of Rs 240.75
on January 20 and an intra-day low of Rs 175.05 on January 22. On the upside,
the Rs 232 level is likely to act as resistance level. On the downside, the
Rs 148 level is likely to act as a support level.
Satyam Computers
Satyam has moved in a range of Rs 36.15, touching an intra-day high of Rs 343.40
on January 20 and an intra-day low of Rs 307.25 on January 22. On the upside,
it is likely to face resistance at the Rs 335 level. On the downside, if it
falls below the Rs 305, it is likely to fall further to test the Rs 270 level.
Wipro
Wipro has moved in a range of Rs 152.90, touching an intra-day high of Rs 1,767
on January 20 and an intra-day low of Rs 1,614 on January 22. On the upside,
it is likely to face
resistance at the Rs 1,735 level. On the downside, the Rs 1,637 level could
act as an important support level; if it falls below this level it is likely
to test the Rs 1,508 level.
| A steady rally has continued on the Nasdaq amidst
occasional bouts of correction. However, the fact is that it has continued
to remain above the 2100 level, which is a positive sign. On the upside,
if it continues to sustain above the 2100 level it is likely to test the
2251 level. On the downside, the 1904 level is an important support level. |
 |
|
