Bulls will hold sway

WEEKLY TECHNICAL ANALYSIS

The Nifty ended the week with a bang at a record 4,297 "" up 49 points "" for the week ended June 1, after scaling a fresh high throughout the week. The index high for the week stood at 4,326 recorded on Friday.

The current momentum suggests more headroom for the index in the near future. The Nifty may target the 4,500-mark in the near term, albeit some resistance around the 4,420 level. The bulls will continue to hold the upper hand as long as the Nifty trades above the 4,085 level in June.

The Sensex moved in a relatively narrow range of 314-odd points. The index surged to a high of 14,682 "" just 40-odd points away from its all-time high of 14,724. The index ended with a gain of 232 points at 14,571.

Once above the Friday's high, the Sensex could easily rally to a new all-time high this week. Following which, the index may face some resistance around the 14,940 level before scaling to 15,800. On the downside, the 14,000 level would be the key support for the index in June, a break of which could put a temporary halt to the upmove.

Among stocks: Infosys is likely to face strong resistance around the Rs 2,010 level, while on the downside, the stock could slide to Rs 1,830.

ITC seems to be trapped in the broad range of Rs 150 to Rs 170. The stock could see a strong upward momentum only if it crosses Rs 175.

This week, the stock could move in the range of Rs 155 to Rs 167.

Reliance is facing some selling pressure around Rs 1,780. The stock would look to find support around the Rs 1,680 level, below which the stock could drop to Rs 1,620.