Last week, the Sensex moved in our expected range (15,550-14,650) till it breached the lower end of the band on Friday. This now opens the possibility of the index dropping to the earlier mentioned major support level of 13,800 (13,780 to be precise).
While alternate bouts of buying and selling will lead to huge swings in the market, the short-term bias remains bearish till the index is below 15,550. The jittery global markets and a holiday-shortened trading week will add to the current nervousness.
Last week, the index, after beginning on a dismal note, did extremely well to recoup its losses and gained over 400 points in intra-week trades. From an early low of 14,706, the Sensex surged to a high of 15,542 — a swing of 972 points. However, the index eventually ended in the red and finished with a loss of 270 points at 14,868. This was the third straight weekly loss for the index.
The current week can be a bit tricky one as the markets generally tend to reverse trend after three weeks. If not, the reversal may come after the seventh or the ninth week.
While the support levels for the Sensex this week are placed at 14,500-14,380-14,265, the index will face resistance around 15,240-15,350-15,470.
The Nifty swung in a near 300-point range – from a high of 4,530, the index tumbled to a low of 4,239 — before settling with a loss of 68 points at 4,333. The Nifty has also broken its support level of 4,275-4,285.
The 4,520-4,530 levels will continue to be the major roadblocks for the Nifty and the bias will remain as long as the index trades below these levels. The Nifty has also broken its support level mentioned at 4,275-4,285. The index is now likely to test its lower levels of 4,030-3,960.
This week, the index may face resistance around 4,445-4,480-4,515, while support on the downside is likely to be around 4,220-4,190-4,150.
While alternate bouts of buying and selling will lead to huge swings in the market, the short-term bias remains bearish till the index is below 15,550. The jittery global markets and a holiday-shortened trading week will add to the current nervousness.
Last week, the index, after beginning on a dismal note, did extremely well to recoup its losses and gained over 400 points in intra-week trades. From an early low of 14,706, the Sensex surged to a high of 15,542 — a swing of 972 points. However, the index eventually ended in the red and finished with a loss of 270 points at 14,868. This was the third straight weekly loss for the index.
The current week can be a bit tricky one as the markets generally tend to reverse trend after three weeks. If not, the reversal may come after the seventh or the ninth week.
While the support levels for the Sensex this week are placed at 14,500-14,380-14,265, the index will face resistance around 15,240-15,350-15,470.
The Nifty swung in a near 300-point range – from a high of 4,530, the index tumbled to a low of 4,239 — before settling with a loss of 68 points at 4,333. The Nifty has also broken its support level of 4,275-4,285.
The 4,520-4,530 levels will continue to be the major roadblocks for the Nifty and the bias will remain as long as the index trades below these levels. The Nifty has also broken its support level mentioned at 4,275-4,285. The index is now likely to test its lower levels of 4,030-3,960.
This week, the index may face resistance around 4,445-4,480-4,515, while support on the downside is likely to be around 4,220-4,190-4,150.
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