Markets Waiting For A Breakout
Saturday, April 12, 2008 | | |Last week, the Sensex consolidated in a narrow range of 636 points while finishing with a gain of 465 points at 15,808.
The Infosys results, to be announced on Tuesday, could be the trigger for a breakout on either side. The broader range of the index remains unchanged at 14,670 to 17,200.
This week, the Sensex may face resistance around 16,050-16,125-16,200, while on the downside the index is likely to find support around 15,560-15,490-15,415.
The NSE Nifty moved in a range of 189 points. From a low of 4,629, the index touched a high of 4,817 and finally ended with a gain of 131 points at 4,778.
The Nifty bollinger bands have narrowed a bit to 4,505 to 4,940. On a positive front, the index managed to close above the 20-DMA (Daily Moving Average) on Friday. The 20-DMA at 4,722 could be a near support.
The 50-DMA is currently at 4,960 and the 200-DMA is at 5,125. These levels could pose significant resistance for the index in coming days.
The Nifty may form a support line at 4,630, with multiple intra-day lows at this level. The 4,660 to 4,570 levels should act as strong support in case of a significant downmove this week.
This week, the index may find support around 4,705-4,685-4,660 and resistance on the upside around 4,850-4,870-4,895.