Frequent weakness in the early part of the week saw the Sensex slip to a low of 10,716. The index, however, regained strength and rallied to a high of 11,363 towards the end of the week. It finally closed the week with a gain of 2.8 per cent (306 points) at 11,329. In the process, the index has soared over 36 per cent (3,003 points) in the last seven weeks.
Wipro, up nearly 14 per cent at Rs 274, was the major gainer among the Sensex stocks this week. Jaiprakash Associates, Reliance Infrastructure, ACC, Grasim and Bharti Airtel surged 10-13 per cent. Ranbaxy and Maruti, down 5 per cent and 4 per cent, respectively were the major losers.
Last week, it was indicated that the markets were likely to see some correction and dips should be looked as buying opportunities. The scenario now seems a bit different this week.
Firstly, for the rally will now enter its eighth week - a fibonacci number (the trend at times changes during the fibonacci time period). Secondly, the index has more or less made a double top around 11,360-odd levels on a weekly basis.
