Nifty may consolidate

WEEKLY TECHNICAL ANALYSIS

The markets witnessed high volatility in the first half of the last week, which receded towards the end as players preferred to adopt a 'wait-and-watch' approach ahead of the extended Chirstmas weekend.

As predicted last week, the Nifty moved within the 3965-3770 band - the high was 3934 and the low 3769. However, the major indices ended lower for the second straight week, which is a matter of concern.

The last week's high and low are likely to be the trigger points for this week. It seems that the index may consolidate in the same range if no external factors influence its movement.

The Nifty is likely to face resistance around 3935-3955 levels, above which it could rally to 4045.

In case of a downturn, the index has support around 3810-3770 levels, a break of which could trigger an accelerated fall.

Infosys (Rs 2,171): The stock is likely to face stiff resistance around Rs 2,240, where it has created multiple highs. In case of a downside, a break of Rs 2,130 could see the stock slide to Rs 2,050.

ITC (Rs 170): The stock traded with a weak bias for most of part of the week. If the stock is unable to cross Rs 173, one may see a fresh downmove in the stock. The stock has support at Rs 164.

Reliance (Rs 1,271): The stock seems stuck in a range of Rs 1,230-1,300. Intra-week, the stock may face resistance around Rs 1,295 to Rs 1,305, while support kicks in around Rs 1,245-1,230.

Reliance Communications (Rs 468): This has been the traders' favourite pick among the index stocks. The stock has a strong support at Rs 453, while on the upside the stock could flare up to Rs 485 to Rs 495.

ICICI Bank (Rs 857): The stock is likely to move in a range of Rs 835-890. The Rs 835 level is a strong support for the stock, while upside hurdles for the stock are at Rs 871 to Rs 877, above which the stock could jump to Rs 890.