Buying continues with optimism

Deepak Sahijwala & Sanjay R Bhatia

The uptrend continued on the markets as FII inflows poured in during the first fortnight of December. Traders and speculators were found active in textiles, tech and a few index heavyweight stocks. Simultaneously, FIIs continued to remain net buyers with high volumes. Moreover, mutual funds also continued to remain net buyers on easing of redemption pressures.

Technically, the benchmark BSE Sensex has successfully tested the 5135 level and managed to sustain above it. So far, FII buying has continued uninterrupted during the course of the fortnight and this augurs well for the markets. Now, it is important that the markets consolidate at the present levels for the Sensex to test higher peaks. However, the markets could continue to witness intermediate bouts of profit booking. On the upside if the Sensex continues to stay above the 5000 level and completes the 12-day cycle, (so far it has completed 9 days), it is likely to test the 5541 level, but before this happens, it is extremely important that a correction takes place. On the downside the 5000 level is psychologically an important support level.

CMC

The CMC stock has moved in a range of Rs 108, touching an intra-day low of Rs 516 on December 5 and an intra-day high of Rs 624 on December 4. If CMC moves and sustains above Rs 574 level it is likely to test the Rs 600 level. On the downside the Rs 510 level continues to remain an important support level.

HCL Technologies

The HCL Tech stock has moved in a range of Rs 23.25, touching an intra-day low of Rs 260.70 on December 8 and an intra-day high of Rs 283.95 on December 4. It is likely to test the Rs 320 level, if it can move and sustain above the Rs 291 level. On the downside Rs 253 is an important support level.

Infosys Technologies

Infosys has moved in a range of Rs 399, touching an intra-day low of Rs 4,700 on December 4 and an intra-day high of

Rs 5,099 on December 4. It is likely to face resistance at the Rs 5,164 level, but if it moves and sustains above this level it is likely to test the psychologically important Rs 5,488 level.

NIIT

NIIT has moved in a range of Rs 19.60, touching an intra-day low of Rs 228.20 on December 8 and an intra-day high of Rs 247.80 on December 10. It is likely to face resistance at the Rs 272 level. On the downside the Rs 221 level is an important support level.

Polaris Software

Polaris has moved in a range of Rs 22.50, touching an intra-day low of Rs 185.75 on December 8 and an intra-day high of Rs 208.25 on December 10. It is likely to face resistance at the Rs 220 level. On the downside the Rs 188 level is an important support level.

Satyam Computers

Satyam has moved in a range of Rs 33.20, touching an intra-day low of Rs 320 on December 8 and an intra-day high of

Rs 353.20 on December 5. On the upside it is likely to face resistance at the Rs 358 level. On the downside the Rs 312 level is an important support level.

Wipro

Wipro has moved in a range of Rs 125, touching an intra-day low of Rs 1,485 on December 8 and an intra-day high of

Rs 1,610 on December 10. On the upside it is likely to face resistance at the Rs 1,500 level, and if it manages to move and sustain above this level it is likely to test the Rs 1,667 level. On the downside the Rs 1,402 level could act as an important support level.