| On each falling day, the markets attempted to recover, but every rise was met with greater selling pressure at higher levels. However, the main indices have so far not breached their key support levels. |
| As long as these levels hold, the strategy of buy-on-decline should continue. But once these levels are breached, the market sentiment will become bearish in short- to medium-term. |
| Last week, we said if the Sensex crossed the weekly high, it could rally to a new all-time high. However, the index could barely manage to move higher than the previous week's high at 14,683. |
| Considerable selling saw the index tumbling to a low of 14,011 "" an intra-week fall of 673 points. The Sensex finally ended with a loss of 507 points (3.5 per cent) at 14,064. |
| It was also predicted last week that the 14,000-mark for the Sensex would be a key support level for June. This week can very well determine the future market trend for the month. One needs to closely watch the 13,900-14,000 level for buying support. |
| The Nifty spurted to a fresh all-time high of 4,363 at the beginning of the week, but thereafter, the gains fizzled out and the index slumped to a low of 4126 "" a drop of 237 points. The index finally finished with a significant loss of 152 points (3.5 per cent) at 4145. The key support level for the Nifty this week will be 4085. |
| Among stocks, Infosys continued to find support around the Rs 1,900-mark. A sharp depreciation in the rupee helped the stock gain some strength in an otherwise weak market. With strong support existing at Rs 1,900-level, the stock may now attempt to cross its resistance level of Rs 2,000. |
| The ITC shares, true to our prediction, dropped to a low of Rs 150 last week. It will be interesting to see if the support holds, and the stock bounces back from the current levels. If not, the stock may slide to Rs 135-level. |
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