Markets welcome new order

Deepak Sahijwala & Sanjay R Bhatia

EUPHORIA prevailed on the markets as the finance minister bowed to the markets’ demand and removed the sting from the transaction tax. Traders and speculators are a relieved lot, and have again got aggressive on the markets. Earlier during the week they were seen taking positions in metals and mid-cap stocks. Incidentally, FIIs and mutual funds were also net buyers on the bourses.

Technically, the sentiment on the bourses has improved positively and the benchmark BSE Sensex has moved above the psychologically important 5,000 level, which augurs well for the bourses. However, the present rally could be capped on the higher side as monsoon woes and rising crude prices continue to remain a worry for the markets. In the meantime, stock-specific action would continue to be witnessed due to the ongoing results season. The markets could also witness a fair degree of volatility due to the expiry of the F&O segment next week. On the upside the benchmark Sensex is likely to test the 5,123 level if it continues to sustain above the 5,000 level. On the downside the 4,860 level is likely to act as an important support level

CMC

The CMC stock has moved in a range of Rs 92, touching an intra-day low of Rs 492 on July 19 and an intra-day high of Rs 584 on July 20. The announcement of the TCS issue has helped the CMC stock post gains. As we had indicated in our last article, CMC was able to test the Rs 513 level positively and even climb up further after it moved and sustained above the Rs 495 level. Now if it succeeds in staying above the Rs 555 level it is likely to test the Rs 594 level. On the downside Rs 531 is likely to act as a support level.

HCL Technologies

The HCL stock has moved in a narrow range of Rs 12.65, touching an intra-day high of Rs 308.95 on July 19 and an intra-day low of Rs 296.30 on July 20. Now it is important that it continues to sustain above the Rs 300 level for it to test the Rs 313 level. On the downside Rs 287 is an important support level.

Infosys

Infosys has moved in a range of Rs 66.80, touching an intra-day high of Rs 1,492 on July 19 and an intra-day low of Rs 1,425.20 on July 21. As we had indicated in our last article, Infosys successfully tested the Rs 1,472 level after it moved and sustained above the Rs 1,430 level. Now it is important that it sustains above the Rs 1,472 level for it to test the Rs 1,525 level. On the downside Rs 1,429 is an important support level, but if it falls below this it is likely to test the Rs 1,352 level.

Polaris Software

Polaris has moved in a range of Rs 12.30 touching an intra-day low of Rs 146.20 on July 20 and an intra-day high of Rs 158.50 on July 22. On the upside, if it continues to sustain above the Rs 157 level it is likely to test the Rs 171 level. On the downside Rs 135 is likely to act as a support level.

Satyam

Satyam has moved in a range of Rs 14.45, touching an intra-day low of Rs 324.45 on July 20 and an intra-day high of Rs 338.90 on July 22. As we had indicated in our last article, Satyam was able to test the Rs 334 level after it moved above its resistance level of Rs 328.30. However it was unable to sustain above this level due to profit booking. On the upside it is likely to face resistance at the Rs 334 level, and if it moves and sustains above this it is likely to test the Rs 341 level. On the downside Rs 305 is likely to act as an important support level.

Wipro

Wipro has moved in a range of Rs 14.85, touching an intra-day low of Rs 517.15 on July 20 and an intra-day high of Rs 532 on July 22. Wipro faced resistance at the Rs 532 level. Now it is important that it moves and sustains above this level for it to test the Rs 556 level. On the downside Rs 486 is an important support level.

Nasdaq

The Nasdaq continues to move in a range-bound trend. As we had indicated in our last article, the index witnessed a further downslide as it failed to move and sustain above the 1,947 level and has fallen below its support level of 1,896. On the upside it is likely to face resistance at the 1,918 level. On the downside 1,876 is an important support level, but if it fails to move above this it is likely to test the 1,865 level.