• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

B. Krishnakumar

Nifty (2082.1)

Preferred View: The subdued trend that prevailed was in sync with last week's expectations. After a spell of volatility, the index managed to close on a firm note on Friday. The near-term trend has turned positive.

The immediate resistance for the index is at the 2095-2100 range. A move past this range would help the index target the 2135-2140 range. Recent price pattern indicates that the index is on course to move to the long-term target of the 2250-2300 level.

The short-term positive outlook is also vindicated by the index's ability to hold above the crucial support level at 2043 during the week. A drop below this level would result in the completion of a bearish "head and shoulder", which could result in a decline to the target zone of the 1960-1970 range.

From a medium-term perspective, the index appears on course to move to the target zone of 2250-2300. This, however, is subject to the Nifty moving past the intermediate resistance at the 2120-2125 range. The positive outlook would be in force as long as the Nifty holds above the crucial support level at 1890-1895.

Comments: Helped by the firm trend in the price of Reliance Industries and recovery in the price of technology sector heavyweights, the index managed to close on a positive note on Friday. With the presentation of the Union Budget just round the corner, the market perception of the Budget proposal would have a major influence on the overall sentiment.

Alternative view: The index is hovering close to the resistance level at the 2095-2100 level. The positive outlook would be under threat if the index fails to move past this zone. A drop below the 2043 level would be an early sign of the reversal of the bullish outlook; a close below 1890 would negate the bullish outlook. This would indicate that the index is headed towards the downside target zone of 1350-1400.

Sensex (6633.76)

The index ventured into a corrective phase last week. After a bout of volatility that last for four days, the Sensex registered a gain of about 56 points on Friday. The index has moved past one of the resistance levels on Friday. It has to move above 6685 for any meaningful uptrend to take shape. The immediate support level for the index is placed at the 6435-6460 range. A move above 6700 would confirm the positive outlook.

CNX IT Index (2871.75)

A subdued trend prevailed last week. Last week's view of a move to the 2950-2960 range is still valid. The near-term positive view would be negated on a drop below 2800. Stop-loss for long positions may be placed at 2825.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Met Advantage from MetLife

Copyright © 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line