<b>Week Ahead:</b> Markets to test all-time highs

MACRO TECHNICALS

Major indices broke key resistances and a minimum upside target of Nifty 4170 can be projected.

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