Wkly Preview: Will Sensex make it a perfect 10?

With the index gaining a whopping 21.3% (2,151 points ) in the last nine weeks, the index is on the threshold of making it a perfect 10.

The chance, however, is limited, but so also is the chance of a steep decline next week. Expiry of the derivatives contract for September could see the index exhibit more intra-day volatile movements next week.

On the positive front, the upcoming earnings season next month is likely to stem any major correction for the time being.

The Sensex is likely to face stiff resistance around the 12,420-level. Only if the index is able to cross this level and stay above it would we see the index hold its gains during the week. On the downside, the index has a crucial support at the 12,080-level, and is likely to get strong support around 11,945.

Weekly resistance and support levels for the index: Resistance around 12,416, 12,470, 12,530, and Support around 12,055, 12,000 and 11,945.

FOR THE RECORD...

After setting-off on a positive the note, the Sensex witnessed a mid-week correction only to bounce back and end with a solid gain of 227 points at 12,237 for the week ended September 22.

The index dropped to a low of 11,834, and then rallied to a high of 12,303 - a swing of 469 points.

In the process, the index has ended higher for the ninth consecutive week. The index has gained a whopping 21.3% (2,151 points) in the last nine weeks.

INDEX MOVERS & SHAKERS

Reliance Communications zoomed over 9% to Rs 347. HLL and HDFC have surged 5.5% each to Rs 257 and Rs 1,405, respectively. Bharti, Bajaj Auto, TCS and ITC were up 3-5% each.

Tata Motors was the major loser, and the stock shed 4% to Rs 835. Maruti and Tata Steel slipped 1.5% each to Rs 937 and Rs 497, respectively.