Stability in the offing

WEEKLY TECHNICAL ANALYSIS

Despite a significant rally on Friday, the Sensex ended last week with a loss of 128 points at 18,233 mainly due to the lack of buying interest in the markets. The index swung in a range of 1,073 points, while touching a high of 18,491 and a low of 17,418.

The index, which witnessed considerable volatility in the last three weeks, may see some stability in the coming weeks as most of last week's key factors such as the US Federal meet, RBI review, quarterly earnings and futures & options expiry are out of the way.

The most encouraging factor last week was the index's ability to hold its near support of 17,150 throughout the week. Friday's rally has brought the index close to its upper end near resistance of 18,500. A crossover would see the index extend its upmove to 20,000 during the month.

At the same time, one needs to keep a watch on 17,150 level as a medium-term support, for if the index breaks this level, then it is most likely to retest its recent low of 15,300.

This week, the index is likely to face resistance around 18,650-18,770-18,900, while support on the downside could be around 17,825-17,700-17,550.

The NSE Nifty moved in a range of 321 points (a high of 5,392 and a low of 5,071) before settling with a loss of 66 points at 5,317.

This week, the Nifty may face resistance around 5,440-5,475-5,515, while on the downside the index is likely to find support around 5,195-5,155-5,120.

Significant resistance for the Nifty would be around 5,550 and 5,700 levels, before the index could rally up to the 6,000-mark again. On the downside, last week's low of around 5,070 should act as a good support for the time being.