No clear signs on Street

WEEKLY TECHNICAL ANALYSIS

After hectic trading last week, major indices are likely to cool off this week with the action becoming more stock-specific rather than broad-based.

During the week, the markets went into a tailspin, with the benchmark BSE Sensex tumbling over 800 points in the first two trading days. However, significant recovery during the rest of the week saw the index rally over 600 points. The net result was that the Sensex ended 185 points lower at 13,615 points. The Nifty was down 73 points at 3889 points.

While the bears had an upper hand at the start of the week, the bulls bounced back smartly to create a flutter in the bear camp. The outlook looks a bit confused with no clear direction available following the zig-zag movement.

However, one may see the Nifty move in a broad range of 3965 to 3770. The 3955-3965 area will be the major resistance zone for the Nifty, above which the index could regain the 4000-mark. On the downside, it seems that the 3,770 support would hold.

Stock movements

HLL: This week's crash saw the stock plunge to Rs 215, its multiple support level, and then bounce back sharply. If the stock is able to clear the resistance zone of Rs 236-238, then one can assume that the stock has bottomed out for the time being.

Reliance: The index heavyweight looks promising, if the stock is able to hold its near support of Rs 1,245, it may attempt a rally up to Rs 1,330. A break of Rs 1,245, could see the stock slide to Rs 1,216.

Satyam: The stock is showing strong upward momentum and is likely to hit the Rs 500 mark very soon, with some resistance seen only around Rs 490 levels. On the downside, the stock has a strong support at Rs 459-463.

Tata Motors: Tata Motors moved in a wide range of Rs 113 "" from a high of Rs 869, it tumbled to a low of Rs 756 "" before recovering sharply to end at Rs 858. The stock may rally to Rs 900 on the upside.