Markets may be volatile

WEEKLY TECHNICAL ANALYSIS

Despite a tired start to the week, the markets finished on a higher note as banks, power and capital goods stocks rallied. The Sensex, from a low of 14,057, rallied to a high of 14,560 "� a gain of 503 points from the week's low. The index finally ended the week with a gain of 305 points at 14,467.

The Nifty from a low of 4136, soared to a high of 4278 "� up 143 points from the week's low "� and settled with a gain of 81 points at 4252. The overall bias seems to be positive, however, the derivatives expiry for the June series coupled with unusual development in global markets could lead to high volatility in the market.

The Sensex is close to the resistance area of 14,540-14,560, above which the index could retest its recent high of 14,680. Any close above this level will see the Sensex make a new all-time high above 14,724. On the downside, the index may find support around 14,275-14,215-14,155.

The Nifty is likely to move in a broad range of 4165-4300. On the upside, the index may face resistance around 4305-4325-4340, while on the downside, the index is likely to find support around 4200-4180-4165.

The CNX 100 bounced back smartly from the low hit earlier this month. The index looks all set to rally up to 4300, provided it clears the resistance zone of 4210-4200. This week, the index is likely to find strong support around 4115, below which the index could drop to 4080.

The CNXIT could be the dark horse and surprise the market on the positive side. The index if manages to hold the last week low of 5140, could see a sharp upmove this week. On the upside, the index may face some resistance around 5240-5290.