The markets once again moved on expected lines, as the Sensex took support at 17,385 and then bounced back. There was some volatility due to the European crisis following S&P’s downgrades and derivatives expiry. The Sensex eventually closed the week with a loss of 135 points at 17,559.
Among index stocks — Sterlite, HDFC and ONGC surged around 4 per cent to Rs 828, Rs 2,821 and Rs 1,055, respectively. Tata Motors, HDFC Bank and SBI rallied 2-3 per cent. On the other hand, Sun Pharma slumped 7 per cent to Rs 1,567. Jaiprakash Associates, DLF, Maruti, Reliance, Tata Steel and Grasim plunged 4-6 per cent each.
Last week, it was mentioned that the markets would continue to trade with a positive bias as long as the recent low of 17,275 held. We continue to maintain the view and we may see the markets testing the higher end of the 17,850-18,050 band. The Sensex may consolidate around 17,675 for a couple of days before attempting an upmove. The 17,675 level is the short-term (20-days) moving average of the index.
The NSE Nifty moved in a range of 140 points, from a low of 5,202, the index rallied to a high of 5,342 and finally settled 26 points lower at 5,278.