| Monday and Friday saw big positive gains while the three sessionssandwiched in between were range-bound. |
| In weekly terms, the Sensexgained 3.84 per cent to close at 13,897 points while the Nifty shot up4.24 per cent to close at 4083 points. The Defty gained a massive 6.76per cent as the rupee continued to strengthen. |
| Both mutual funds andFIIs were big net buyers.Breadth was good with advances comfortably outnumbering declines. TheBSE 500 was up 3.39 per cent and volumes were high across the entireweek. |
| The Bank Nifty gained 4.39 per cent while the CNX IT was up just0.63 per cent despite triggering the positive sentiment through goodresults. |
| Outlook: The market could just test its all-time highs of February 2007 (Nifty 4245 and Sensex 14,724) next week since sentiment seems stronggoing into settlement. |
| The Nifty and the Sensex both broke key resistances and a minimum upside target of Nifty 4170 can be projected. On thedownside, there is support between 3075-4025. |
| Rationale: There was massive resistance at 4050 which was broken on high volumes "� this reads like a classic breakout. However there ismore resistance above 4150 and it goes all the way till the record highs. Expect high intra-day volatility. |
| Counter-view: This is results season and we have already seen how that can cause unpredictable swings. A couple of bad results next week could cause a massive shift in sentiment. However, the previous resistances at 4050, 4025 and 3975 should now be successive support levels. So there shouldn't be a massive downside. |
| Bulls & Bears: There were far more bulls than bears this week. In terms of sectors, telecom could be the next big play. Bharti Airtel and Reliance Communications both seem to be quite bullish. |
| SBI and ICICI also saw significant investment "� that's why the Bank Nifty jumped. Reliance and IPCL saw sharp spurts. SAIL continued its bull run while Tisco saw huge volatility though it finally ended positive. |
| Satyam, TCS and Wipro all saw massive volumes but the price moves were unexceptional in all three instances despite the excellent results. |
| ABB, Sun Pharma, NDTV and Larsen also look bullish while PTC could be a dark horse on the basis of the past three sessions. Jet also climbed despite the apparently negative initial response to the Sahara deal. |
| MICRO TECHNICALS |
| Bharti Airtel Current Price: 845.65 Target Price: 860 |
| The stock has completed a bullish formation albeit on average volumes.It has a target of 860 in the short-term and the potential to movefurther. There will be fairly high daily volatility. Keep a stop at830 and go long. |
| IPCL Current Price: 304.7 Target Price: 320 |
| The stock has completed a bullish formation with a breakout past the 297 level. It has a likely target of about 320. Keep a stop at 297 and go long. |
| The long-term formation is quite promising so, it may bereasonable to only book partial profits in the 320 region. |
| L&T Current Price: 1693.7 Target Price:1750, 1850 (3-week timeframe) |
| The stock has almost completed a bullish saucer formation. It has a short-term target of 1750 and a potential upside of 1850 inside the next 3 weeks. Keep a stop at 1675 and go long. Be prepared for high volatility. |
| Reliance Communications Current Price: 455.8 Target Price: 468 |
| The stock has moved past a resistance at 448 on expanded volumes. It has a short-term target of 468 and it will run into severe resistance around those levels. Keep a stop at 448 and go long. Book partial profits above 465. |
| Tata Steel Current Price: 533 Target Price: 480-535 (range trading) |
| The stock swung between 460-540 last week on massive volumes as themarket tried to evaluate the post-Corus scenario. |
| It ended positively at the higher end of the scale. Expect volatility to continue. If itcloses above 535, there will be an upside till 570. If it closes below 480, there will be a drop till 445. Be prepared accordingly. |
| (The target price and projected movements given above are in terms of the next five trading sessions unless otherwise stated.) |
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