@rex_cano
Mumbai: In the week under review, the markets were on a roller-coaster as the key benchmark indices after taking a sharp knock at the start of the week, bounced back with a similar vigour and ended the week with decent gains. Global cues were largely subdued with all eyes now on the US for hopes of a fresh stimulus package for its economy.
The BSE benchmark index, the Sensex, at first tumbled to a low of 36,911 – down almost 700 points for the week. However, renewed buying interest especially in index heavyweight Reliance Industries, Tata Steel and select financial shares saw the BSE index rebound and rally to a high of 38,221 – an intra-week gain of 1,310 points. The Sensex finally ended the week 434 points higher at 38,041.
Also Read: Sensex regains 38K, expect some consolidation on Friday
Among the Sensex 30 stocks, Tata Steel was the top gainer, the stock soared over 10 per cent. Maruti Suzuki, Bajaj Finance, Asian Paints, Reliance Industries and ICICI Bank were the other significant gainers, up over 3 per cent each. On the flip side, IndusInd Bank slipped nearly 3 per cent. HCL Technologies, Kotak Mahindra Bank, Infosys, NTPC, PowerGrid Corporation, Sun Pharma and Mahindra & Mahindra were the other notable losers.
At the end of the first week of this new month, the BSE Sensex has not yet given any clear indication on the monthly Fibonacci chart. As per the monthly Fibonacci chart, the BSE index has moved in a band of 36,800-38,400, a breakout in either direction can trigger a move towards either 39,000 on the upside or 36,200 on the downside.
As per the weekly Fibonacci chart, next week, in case of a downside the Sensex is likely to seek support around 37,540-37,390-37,230. Whereas, in case of an up move the BSE index may face resistance around 38,540-38,700-38,850.
The NSE Nifty ended the week with a gain of 1.3 per cent at 11,214. The NSE index seems to be in consolidation mode. As per the daily charts, the near term bias is likely to remain positive as long as the Nifty sustains above its 20-DMA (Daily Moving Average), which is at 11,035. Break of the same, can trigger a slide towards its 200-DMA at 10,850-odd level. On the upside, the Nifty may aim for 11,500.
During its intra-week correction, the NSE index took support around the 50-WMA (Weekly Moving Average) and ended above its 100-WMA for the third straight week, which is a healthy sign. The 50-WMA lies around 10,900-odd level, while the 100-WMA is at 11,015. Presence of multiple support levels in the 10,850-11,035 range weighs in favour of the bulls.
It is likely that the Nifty may spend some time testing and re-testing these support levels and its recent high around 11,300-odd level before making the next decisive move. However, as a word of caution select momentum oscillators are in overbought zones, thus fears of a possible market correction may tend to limit the upside in the near term.
Among the key momentum oscillators on the weekly charts, the MACD (Moving Average Convergence Divergence) continues to remain in favour of the bulls. The DI (Directional Index) is marginally positive, and seems to be converging for now. The Slow Stochastic remains inconclusive and the RSI (Relative Strength Index) is in neutral mode.
Disclaimer: The views expressed in this article are personal and for information purpose only, it does not advocate any buy or sell /recommendation.
