Week ahead in Mkts: Support at 3750 to hold

MACRO TECHNICALS

Unless volumes climb, the likeliest move this week for the Nifty will be between 3750-3925 points.

The market landed somewhat lower after a week of volatile trading. The Sensex closed at 13471, with a loss of 1.05 per cent.

The Nifty ended up losing 0.45 per cent closing at 3871.15 points The Defty was down 0.11 per cent as the rupee rose due to the CRR hike.

Breadth signals were mixed. Volumes were low in general and lower on the days with rising prices. However advances out-numbered declines towards the latter part of the week.

The BSE-500 lost 0.92 per cent. The Bank Nifty lost a disproportionate 2.82 per cent while the CNX IT lost 1.26 per cent.

In institutional activity, mutual funds were net buyers until Thursday, while the FIIs were heavy sellers except on Friday. The Nifty put-call ratio has dipped to around the 1 mark.

Outlook: The Nifty held above a support at 3750 through the week. By the weekend, momentum indicators were starting to perk up. That's positive but on the upside, it couldn't penetrate resistance at 3925.

Unless volumes climb, the likeliest move next week is between 3750-3925