Uncertainty prevails

Deepak Sahijwala & Sanjay R Bhatia

The markets have remained volatile amidst a range-bound trend. Volumes continue to remain low with institutions and retail investors abstaining from taking fresh positions due to uncertainty on the common minimum programme among other things. FIIs and mutual funds continue to remain net sellers.

Technically, the markets are likely to remain volatile. However, it is important that FIIs start making purchases again for a rally to sustain. Meanwhile, the markets will take cues from the global markets, rising crude prices and the progress of the monsoon. Overall the trend of the market is likely to remain range-bound till the budget is announced. On the upside, the Sensex is likely to face resistance at the 5400 level. On the downside, the 4648 level is likely to act as an important support level.

CMC

The CMC stock has moved in a range of Rs 45.05, touching an intra-day low of Rs 459.95 on May 24 and an intra-day high of Rs 505 on May 26. On the upside, it is likely face resistance at the Rs 524 level. On the downside, the Rs 425 level is likely to act as a support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 34, touching an intra-day low of Rs 315 on May 24 and an intra-day high of Rs 349 on the same day. As we had indicated in our last issue, HCL was able to test the Rs 327 level successfully after it moved above the Rs 310 level. If it continues to sustain above the Rs 327 level it is likely to test the Rs 389 level. On the downside the Rs 300 level is an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 416.65, touching an intra-day low of Rs 4,982.35 on May 24 and an intra-day high of Rs 5,399 on May 25. On the upside, it is likely to face resistance at the Rs 5,651 level. On the downside, the Rs 4,418 level is an important support level.

NIIT

NIIT has moved in a range of Rs 32.70, touching an intra-day low of Rs 136.20 on May 24 and an intra-day high of Rs 165.70 on May 26. On the upside, the Rs 174 level is likely to act as a resistance level. On the downside, the Rs 150 level is likely to act as an important support level.

Polaris Software

Polaris has moved in a narrow range of Rs 11.70, touching an intra-day low of Rs 136 on May 24 and an intra-day high of Rs 147.70 on the same day. On the upside, the Rs 156 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 171 level. On the downside, Rs 107 level is an important support level.

Satyam Computer

Satyam has moved in a range of Rs 29.30, touching an intra-day low of Rs 303.10 on May 24 and an intra-day high of Rs 332.40 on May 26. On the upside, it is likely to face resistance at the Rs 342 level. On the downside, the Rs 290 level is likely to act as an important support level.

Wipro

Wipro has moved in a range of Rs 126, touching an intra-day low of Rs 1,518 on May 24 and an intra-day high of Rs 1,644 on May 25. On the upside, it is likely to face resistance at the Rs 1,632 level, and if it manages to move and sustain above this level, it is likely to test the Rs 1,731 level. On the downside, Rs 1,360 is an important support level.

Nasdaq

The Nasdaq has posted gains on the back of strong stock fundamentals. Moreover, it has also moved above its 200-day moving average, which is a positive sign and augurs well for the index. On the upside, it is likely to face resistance at the 1990 level. On the downside, the 1881 level is likely to act as an important support level.