Wkly Tech Analysis: Support around 4050

The Sensex ended with marginal gains for the second straight week, up 26 points at 13,934. The three-day trading week saw the index drop to a low of 13,694, recover and then rally to a high of 14,189, an intra-week range of 496 points.

The index has been moving in a 500-odd points weekly range for the last six weeks, from the week ended March 30 till date. During the period, the Sensex touched a low of 12,425 and a high of 14,384, which is a movement of 1,959 points.

However, it looks like the index is all set to break the 500-odd points trading range. The index is just 100-odd points away from its crucial support of 13,800, a break of which could see the index slide to 13,100. On the positive side, the index may rally to 14,600, if it is successful in countering the resistance area of 14,250.

The Sensex is likely to face resistance at around 14,125-14,180-14,240 levels this week. In case of a fall, the index may find support at around 13,745-13,690-13,625.

The Nifty, in comparison to the Sensex, fared better as it gained 34 points for the week ended May 4. The Nifty is also better placed than the Sensex in terms of rallying to a new high. The Nifty touched a high of 4181 and a low of 4029, a range of 152 points last week.

The index has a strong support at around 4050. However, a break below this level could see the index plunge another 200 points to around 3850. On the upside, a move above 4210 could see the index scale new heights.  On its way up, the Nifty may face resistance at around 4175-4190-4210, while in case of a downside, it is likely to find support at around 4060-4040-4025 levels.