The Sensex ended on a strong note yesterday led by smart gains in capital goods, metal and energy stocks. The index gained 283 points to end a 9,584, and in the process cleared the resistance zone of 9,425-9,515.
For a continued uptrend the index needs to sustain above this resistance zone for the remaining of the week. The index may counter some resistance around 9,825, above which the index is likely to move up to 10,125 in the coming days.
On the downside, if the index breaks below 9,425-9,515, the index may then slip to 9,090.
Today, the Sensex is likely to face resistance around 9,690-9,720-9,750, while support on the downside will be around 9,480-9,450-9,415.
The NSE Nifty is likely to face resistance around 2,950-2,965-2,975, while support on the downside will be around 2,885-2,875-2,865.
The Nifty yesterday broke above its resistance of 2,900. However, the index needs to close above this level for the next couple of trading days in order to give a clear buy signal.
