The markets moved in an extremely tight range for the third straight week. The Nifty made a lower high of 5,466 and found support at 5,349. The index ended the week with a loss of 82 points at 5,367.
The Sensex moved in a range of 355 points. The index touched a high of 18,194 and then slipped to a low of 17,839. The Sensex finally settled with a loss of 263 points at 17,868.
Although the indices moved in a tight range, individual stocks saw larger swings based on the results impact. Maruti was the major loser; the stock tumbled nearly 12 per cent to Rs 1,198 on disappointing earnings.
Jaiprakash Associates, Hero Honda, Larsen & Toubro, DLF, Reliance Communications, Reliance and Hindustan Unilever dropped four-eight per cent each. Mahindra & Mahindra, however, rallied 5.5 per cent to Rs 662. HDFC Bank and ITC were the other prominent gainers.
For the last three weeks, it seems that the Nifty is facing resistance as it approaches the 5,500 mark. At the same time, the index has been able to seek support around 5,350. Next week, the index may seek support around 5,330. However, a breakout in either direction, that is, above 5,500 or below 5,330, could trigger the next move.
In August, the Nifty is likely to move in a broad range of 300 points. On the upside, the index is likely to advance towards 5465-5495-5525. On the downside, the index may decline to 5270-5240-5210.
