The markets scaled new peaks during the week ended December 14 after a gap of a month. The indices, however, cut their gains towards the end of the week on account of profit-booking in the last two sessions. Some of the good work done by the bulls thus got undone.
On the positive side, there has been no major changes in market trend so far - either in the short or the medium-term.
The market will test crucial support levels this week in case there is some more selling. The indices will have to hold these support levels in order to continue with the uptrend in the short-term.
From a low of 5,923, the Nifty soared to a fresh all-time intra-day high of 6,185 before paring gains and ending at 6,048, a gain of 73 points.
The Nifty has immediate support at 6,000, below which it may test 5,900 or slip further to 5,750. In order to regain the upward momentum, the index will have to cross the 6,150-mark. Till that time, the index may trade within a broad range of 5,750 and 6,150.
The Nifty is likely to find support around 5,950-5,915-5,885 this week and it may face resistance around 6,150-6,180-6,210.
The Sensex moved in a range of 664 points. From a low of 19,834, the index rallied to a new all-time intra-day high of 20,498 and finally ended with a modest gain of 65 points at 20,031.
The Sensex has slipped below its short-term support of 20,135. It needs to regain this level as soon as possible to resume its uptrend. The Nifty, on the other hand, stands above its short-term support of 6,000.
If the Sensex stays consistently below the 20,000-mark, it may test its medium-term support in the 19,500-19,350 zone. The 14-day DMA (daily moving average) for the index is around 19,700.
The Sensex may face resistance around 20,285-20,360-20,440 this week, while it is likely to find support around 19,780-19,700-19,620.
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