Week Ahead: Market could be range-bound

Nifty could climb 150-200 points if it manages to break through the 3450 resistance.

The market weathered settlement quite smoothly and in fact, intra-day volatility was far lower than one would normally expect. The market continued to remain in an uptrend.

However the movements were very sector-specific and volumes were relatively low, especially given that it was settlement week.

Index strategies
The Nifty tested resistance towards the top of a wide 3250-3450 range several times this week. It did not however, manage to break through. This leaves an interesting situation for the derivatives index trader.

The Nifty could climb another 150-200 points if it does manage to break through the 3450 resistance. On the other hand, if it fails, it is liable to drop till around 3300. So the market could range between 3300-3600 within the next two weeks.

The Nifty closed at 3435 on Friday with the September future at 3430.6, October future at 3425.55 and November future at 3420. However the November future still has extremely low open interest so, it