Many hurdles for Sensex

The Sensex snapped its four-week losing streak on the back of a sharp three-day rally. The index, which gained over 1,500 points in the last three trading days, ended the week with a gain of 650 points (3.7 per cent) at 18,115. Earlier in the week, the index had dropped to a low of 16,458.

BHEL, ICICI Bank and Hindalco were the major gainers among the index stocks, with gains in excess of 11 per cent each. Reliance Energy - down almost 13 per cent - was the major loser for the week ended February 15.

It is difficult to say whether the market has bottomed out. The current upmove, however, is likely to continue and the index may rally up to the 19,000 level.

There are multiple resistances around the 19,000 mark. The weekly and monthly charts show resistance at 18,900-18,950, while the quarterly chart indicates resistance at the 19,000 level. The index may face resistance around 18,750-18,950-19,150 this week, while it is likely to find support around 17,470-17,270-17,070.

The Nifty moved in a range of 512 points. From a low of 4,804, the index rallied to a high of 5,315 and finally settled with a gain of 3.6 per cent (183 points) at 5,303.

The index dipped below its 200-day daily moving average (DMA) last week, but has bounced back sharply and is now above its long-term (200-day) and short-term (20-day) DMA. The long-term DMA is 4,998 and the short-term DMA is 5,178. The medium-term (50-day) DMA is 5,700.

If the Nifty crosses the 5,400-mark (quarterly resistance), it may rally up to the 5,600-5,700 resistance zone. This week, the index is likely to find support around 5,105-5,050-4,985. On the upside, the index may face resistance around 5,500-5,560-5,620