Angel Broking: Consolidation likely to continue

Angel Broking, in its weekly market outlook, states that the markets may remain volatile on the back of the expiry of derivatives contracts on Thursday (31 August) and the government's decision regarding domestic fuel prices, which is slated for review on 1 September 2006.

On the technical front, Sensex has continuously faced resistance at the upper band of the Flag formation pattern. There had been strong buying interest at lower levels.

However, Sensex/Nifty have not surpassed the crucial resistance at 11620/3398 level and this consolidation phase is likely to continue with stock specific action in this week.

Angel Broking maintains its upside target for the next 6-8 weeks at 12000/3535 level (according to the Pitchfork indicator). The trend deciding level for the Sensex/Nifty is 11502/3364.

If Indices manage to trade above this level expect a further rally upto 11840/3462 where some profit booking may be witnessed. However, if Indices trade below 11502/3364 then expect a fall upto 11367/3326.