Tech stocks turn bullish

Deepak Sahijwala & Sanjay R Bhatia

The markets continue to witness a strong rally on the back of easing crude prices. Traders and speculators are once again building positions in banking and tech stocks, while unwinding positions in auto stocks on the back of the truckers’ strike. They were also seen actively trading in the TCS stock, which listed with a hefty premium, but lost some of it on profit booking by high net worth individuals. The fact remains that the market is bullish on the prospects of the tech sector. FIIs continued to remain net buyers on the bourses along with mutual funds. However, some FIIs were also seen booking profits at higher levels.

Technically, the sentiment has improved after the easing of crude prices. Now, it is important that the benchmark Sensex moves and sustains above the 5123 level, for at least four trading days, for the rally to gain momentum. Overall, the market sentiment continues to remain cautious but positive and would continue to take cues from the global markets and crude prices. However, the ongoing truckers strike is likely to add to the woes of companies and hit production. It would also affect the already rising inflation rates, which continues to remain a major cause for worry. Overall, the markets will continue to witness stock specific action. On the downside, 5123 level is an important support level followed by the psychologically important 5000 level. On the upside, if the benchmark BSE Sensex continues to sustain above the 5123 level it is likely to test the 5252 level.

CMC

The CMC stock has moved in a range of Rs 94.90, touching an intra-day low of Rs 685.70 on August 23 and an intra-day high of Rs 701.90 on August 24. The CMC stock saw good speculative interest ahead of the TCS IPO and its listing. But now it is likely to witness profit booking at higher levels. It faces resistance at the Rs 715 level. On the downside, the Rs 641 level is likely to act as a support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 13.80, touching an intra-day low of Rs 314.10 on August 23 and an intra-day high of Rs 327.90 on August 26. On the upside the Rs 325 level is likely to act as a resistance level. If it successfully moves and sustains above this level then it is likely to test the Rs 341 level. On the downside the Rs 304 level is an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 65, touching an intra-day high of Rs 1,581 on August 23 and an intra-day low of Rs 1,535.05 on August 25. On the upside it is likely to face resistance at the Rs 1,582 level. On the downside the Rs 1,429 level is an important support level.

NIIT

NIIT has moved in an extremely narrow range of Rs 7.85, touching an intra-day low of Rs 152 on August 24 and an intra-day high of Rs 159.85 on August 26. On the upside the Rs 165 level is likely to act as a resistance level. On the downside the Rs 142.10 level is likely to act as a support level.

Polaris Software

Polaris has moved in a range of Rs 11.70 touching an intra-day low of Rs 144 on August 24 and an intra-day high of Rs 155.70 on August 25. 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 Computers

Satyam has moved in a range of Rs 14.75, touching an intra-day low of Rs 338.70 on August 23 and an intra-day high of Rs 350 on August 25. On the upside, the Rs 350.45 level is likely to act as a resistance level. On the downside, the Rs 323.60 level is likely to act as a support level.

Wipro

Wipro has moved in a range of Rs 25, touching an intra-day high of Rs 585 on August 25 and an intra-day low of Rs 560 on August 26. On the upside, the Rs 587 level is likely to act as a resistance level. On the downside, the Rs 534.40 level is an important support level.