Continuing its winning streak, the markets began the week on a positive note as global cues helped. The Sensex rallied to a high of 17,188 in early morning trades. The index, thereafter, consolidated and pared some gains before signing off 108 points higher at 17,103.
Auto stocks were once again in limelight among the Sensex pack. Mahindra & Mahindra soared over 4% to Rs 1,122. Hero Honda, ITC, ICICI Bank and ACC rallied 2-3% each. On the other hand, Bharti Airtel slipped over 2% to Rs 292. Hindustan Unilever and Reliance Infrastructure declined 1.5% each.
The Sensex now has multiple resistances in front of it. Firstly the index is likely to face some resistance around 17,250, above which it may stumble around 17,400-17,465. The bulls are likely to have the upper hand as long as the index stays above 17,140. Currently, the markets are in no trade zone i.e. as long as the Sensex stays between 17,060-17,140 one should avoid trading.
In case, the index trades consistently below 17,060 then the index is likely to exhibit further weakness and could slip another 300-odd points. Today, the index may face resistance around 17,160-17,200, while find support around 17,045-17,005.
The NSE Nifty moved in a range of 55 points, and finally settled with a gain of 35 points at 5,124.
The Nifty is showing signs of exhaustion, at the best the up move may continue for another four-five trading days. The fact that the momentum oscillators are in overbought zones on the daily charts will continue to weigh on the markets.
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The short-term and medium-term moving averages suggest support for the Nifty at 5,020 and 4,900 in case of significant down move. Today, the index is likely to find support around 5,105-5,090, while may face resistance around 5,145-5,160.
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