Markets in a buying mode

WEEKLY TECHNICAL ANALYSIS

Despite no negative surprises from the two big events viz the Fed meet and the UP Assembly elections results, markets slipped amid high volatility.

However, on the positive side, the markets witnessed rejuvenated buying interest at every dip.

Last week we had mentioned that 13,800-level for the Sensex would be vital. It may be noted that the index closed around this very level for the last four trading days as bulls and bears remained face-to- face.

The Sensex, from a high of 14,067, dropped to a low of 13,554 "" a swing of 513 points "" before ending with a loss of 138 points at 13,796. In a way, the index continued its habit of swinging in a range of 500 points for the seventh straight week.

After breaking the key support level of 13,800, the bias seems to be negative. However, we probably are in a buying mode in a declining market as long as the Sensex stays about the 13,100 level. 
 

WEEKLY RANGE
	Sensex	Nifty
S3	13480	3970
S2	13540	3990
S1	13600	4010
Close	13796	4077
R1	14000	4145
R2	14050	4165
R3	14115	4185
S-Support level R-Resistance level

Next week, the Sensex may face resistance around 14,000-14,050-14,115, while on the downside the index is likely to find support around 13,600-13,540-13,480.

The NSE index, Nifty, moved in a range of 177 points, i.e. from a high of 4,158, it slipped to a low of 3981, before settling with a loss of 41 points at 4,077.

The Nifty is likely to find support around 4,010-3,990-3,970, while on the upside the index may face resistance around 4,145-4,165-4,185.