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| Bulls to have upper hand above 12,100 |
| Rex Cano / Mumbai May 10, 2009, 00:44 IST |
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The markets continued to rise for yet another week, and the rally was largely led by metal stocks on hopes of a global recovery. The Sensex surged to a high of 12,272 and finally settled with a gain of 4.2 per cent (473 points) at 11,876. In the process, the index has now gained 43.7 per cent (3,551 points) in the last nine weeks.
Among the index stocks — Hindalco zoomed nearly 27 per cent to Rs 54. Sterlite and Tata Steel soared around 20 per cent to Rs 409 and Rs 238 respectively. Larsen & Toubro, Tata Motors, Reliance Infrastructure and ICICI Bank surged 9-13 per cent. ACC, however, shed nearly 8 per cent to Rs 603.
The markets moved along expected lines and it seems that the Sensex is on course to its near-term target of 12,600. However, volatility is likely to remain a key factor in the coming week as markets await election results over the weekend.
This week, the index is likely to face resistance around last week’s high of 12,270, while support on the downside would be around 11,650-11,480. The markets will favour bulls only if the index manages to sustain above 12,100. On the downside, a break of 11,400, could see the index take a sharp dip towards 10,600.
The NSE Nifty moved in a range of 238 points, from a low of 3,479, the index surged to a high of 3,717, and finally settled with a gain of 4.2 per cent (147 points) at 3,621.
The index is likely to face considerable resistance around 3,710-3,770-3,815. On the downside, the index is likely to find support around 3,530-3,475. The short-term (20-days) daily moving average is at 3,455, and the mid-term (50-days) daily moving average is at 3,070.
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