Unable to sustain at 4,180 levels, Nifty lost ground sharply on Friday to close at 4,117.35 on profit-booking with a weekly gain of 34 points. The BSE Sensex, too, was unable to sustain at 14,100-levels, and fell below the 14,000-level to close at 13,934.27. Midcap stocks fired well with the BSE midcap index up by over 615 points to 5,863.16 in the truncated week.Outlook: Some intra-day corrections may continue for 1-2 days with support at Nifty 4,100. Operators have written 20% of total put open interest (OI) at 4100 and 27% put OI at 4,000 levels, indicating strong support at these levels. The index is unlikely to go past the 4,200-level as 21.4% call OI have been written at 4,200 call.The market view, however, is of a mild & healthy correction. This can change depending on how market reacts to the level. The trend is up as long as Nifty 4,040 holds. A lower high and lower low formation on the weekly chart points to indecision between bulls and bears. The targets for the Sensex and Nifty are at 14,725 and 4,245, respectively, but trend reversal would see the Sensex drop to 13,580 and Nifty to 3,970.
