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Downmove may be short-lived

WEEKLY TECHNICAL ANALYSIS

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Rex Cano Mumbai
Last Updated : Jan 29 2013 | 1:55 AM IST

The week started on a positive note, but the gains fizzled out owing to profit-taking. The Sensex moved in a near 900-points range - from a high of 15,580 to a low of 14,687 - before settling with a loss of 444 points at 14,724 during the week ended August 14. The index broke its five-week winning streak in the process.

Financials and realty stocks were the major draggers - HDFC, DLF, HDFC Bank, ICICI Bank, Larsen & Toubro, Hindalco and Jaiprakash Associates shed 6-9 per cent each. Mahindra & Mahindra, Reliance and Grasim, on the other hand, gained around 1 per cent each.

The Sensex is likely to seek support around 14,300-14,350 this week. Weakness may drag the benchmark to the strong support base around 13,350-13,500. But as long as the index holds this level, it should move towards 17,000 by the end of next month. The Nifty moved in a range of 229 points - from a high of 4,650, the index slipped to a low of 4,421 - and finally ended with a loss of 99 points at 4,431.

The Nifty has turned negative for the last few trading sessions, but may find support around 4,330. The downmove could be short-lived as the charts show some positive signs. On the daily charts, the short-term (20-days) moving average has crossed the mid-term (50-days) moving average. The short-term moving average is 4,395, while the mid-term moving average is 4,298.

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First Published: Aug 17 2008 | 12:00 AM IST

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