Market sentiment remains upbeat

Deepak Sahijwala & Sanjay R Bhatia

The markets have continued to display strength on the back of reports of a favourable monsoon and CalPERS (The California Public Employees’ Retirement System), the largest US pension fund investing $20 million in India. Traders and speculators were seen building positions in metal index heavyweights and tech stocks at higher levels. FIIs continued to remain net buyers on the bourses. Mutual funds however continued to remain net sellers and were seen liquidating at higher levels.

Technically, the markets have shown considerable strength despite a number of negative cues, which is a positive sign. The benchmark BSE Sensex has stayed above the 5123 level for four trading days, which augurs well and could initiate an increase in the momentum of the ongoing rally. In the meanwhile, the markets would continue to take cues from the global markets as also rising crude prices, which incidentally had moved above the $44 mark but have cooled off marginally. On the downside, the 5123 level is likely to act as an important support level, followed by the psychologically crucial 5000 level. On the upside, the 5400 level is likely to act as a resistance level.

CMC

The CMC stock has moved in a range of Rs 115, touching an intra-day low of Rs 500 on August 2 and an intra-day high of Rs 615 on the same day. As we had indicated in our last issue, CMC has successfully tested the Rs 594 level and has so far managed to sustain above it. Now, if it continues to sustain above the Rs 594 level, then it is likely to test the Rs 621 level. On the downside, the Rs 561 level is likely to act as a support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 19.20, touching an intra-day high of Rs 319.50 on August 2 and an intra-day low of Rs 300.30 on August 5. Unfortunately, it is struggling to sustain above the Rs 313 level, due to profit booking. Now, it is important that it moves and sustains above the Rs 313 level for it to test the Rs 341 level. On the downside, the Rs 298 level is an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 40, touching an intra-day high of Rs 1,582 on August 3 and an intra-day high of Rs 1,542 on August 4. It was able to test the Rs 1,525 successfully after it sustained above the Rs 1,472 level. Now, it is important that it continues to sustain above the Rs 1,525 level for it to test the Rs 1,716 level. On the downside, Rs 1,429 level is an important support level.

Polaris Software

Polaris has moved in a range of Rs 8.20 touching an intra-day low of Rs 144.65 on August 2 and an intra-day high of Rs 152.85 on August 4. However, it has continued to witness profit booking above the Rs 150 level. On the upside, the Rs 157 level is likely to act as a resistance level. On the downside, the Rs 135 level is likely to act as a support level.

Satyam Computer

Satyam has moved in a range of Rs 15.10, touching an intra-day low of Rs 335.35 on August 2 and an intra-day high of Rs 350.45 on August 5. It has successfully tested the Rs 341 level after it sustained above the Rs 334 level, but has fallen below this level due to profit booking. Now, it is important that it continues to sustain above the Rs 346 level for it to test the Rs 364 level. On the downside, Rs 323 level is likely to act as an important support level.

Wipro

Wipro has moved in a range of Rs 41.65, touching an intra-day low of Rs 527 on August 4 and an intra-day high of Rs 568.65 on August 5. On the upside, if Wipro can sustain above the Rs 550 level, then it is likely to test the Rs 587 level. On the downside, the Rs 486 level is an important support level.

Nasdaq

The Nasdaq continued to be weak on the back of rising crude prices and security threats. Moreover, it has failed to find support at important levels. On the downside, if the Nasdaq fails to recover above the 1865 level, then it is likely to test the 1786 level. On the upside, it is likely to face resistance at the 1889 level.