The Nifty ended the week with a gain of 2.8 per cent (154 points) at 5763. The index moved in a range of 187 points, from a high of 5783 to a low of 5595. It was, however, was down 2.3 per cent (138 points) last month.
The Nifty ended above its short-term (20 days) moving average. The short-term moving average is currently above the mid-term (50 days) moving average, which is a positive sign. The index is likely to find significant support around 5735 (short-term) and 5525 (mid-term) levels in case of any weakness.
On the upside, the index may rally upto 6000.
The index is likely to face resistance around 5835-5855-5880 this week, while the support would be around 5690-5670-5645.
The Sensex consolidated in a narrow range of 541 points last week,compared with a swing of 1,700 points in each of the previous two weeks. The index touched a low of 18,884 and then rallied to a high of 19,425, before settling with a gain of 2.7 per cent (510 points) at 19,363. However, the index ended the month (November) with a loss of 2.4 per cent (475 points) at 19,363.
Unlike Nifty, the Sensex continues to have a negative bias as long as it stays below the 19,500 - 19,800 band. Only if the index is able to cross 19,800 convincingly shall we may see it rally to record levels.
On the downside, the 18,600 level continues to be crucial as sustained weakness below this level could see the index dip to 17,000 - 17,300 levels.
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