According to Anand Rathi Securities, with the derivatives settlement in this week, the sentiments are expected to remain volatile. Major indices ruling close to the next critical levels could see some profit booking.At the same time, depressed global sentiments on an early indication of a slowdown in the US market could have some likely dark clouds looming on the Indian markets also.Overall Anand Rathi Securities feels that domestic factors are centered on the oil & gas sector, whereas the overall market direction this week would be more related to trends in profit booking and global market direction.Volume and OI followed by rollover positions would have a deciding trend for the early part of the week.From the technical perspective, on the average front, the indices are trading above the weekly averages. This again has bullish implications.The 5-week simple moving average has moved above the 20-week simple moving average. Also, both these averages are above the 50-week simple moving average.This indicates that the averages are in a positive phase and that the possibility of a further rise cannot be ruled out.Based on the chart pattern developed to date, one may use the level of 11,295 (Sensex) and 3300 (Nifty) as the stop loss level for long positions for the time being.Breach of this support level will amount to violation of the previous week's low level and would indicate the possibility of a further correction.On the resistance front, the Sensex faces resistance at around 11,850-12,000 level and the Nifty at around 3525 level. The broking firm maintains its bullish view for the week.
