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| Wkly Tech Analysis: Resistance seen around 16,940 |
| Rex Cano / Mumbai Nov 15, 2009, 00:44 IST |
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Barring intra-day corrections, the market displayed a firm trend throughout the week. The Sensex rallied 4.27 per cent (691 points) to end at 16,849. IT, metals and select banking stocks were the major gainers during the week.
Among the index stocks — Tata Motors zoomed nearly 9 per cent to Rs 570. Reliance backed by the new oil find and bonus issue surged over 8 per cent to Rs 1,957. The company’s AGM is scheduled for November 17, when the record date for the bonus issue may be announced. Being a heavyweight, it is likely to remain one of the major factors for a market swing in the coming day.
TCS, ICICI Bank, Infosys, Mahindra & Mahindra, Grasim, Wipro, Reliance Infrastructure and HDFC Bank were also up around 5-8 per cent. Bharti Airtel, however, shed nearly 6 per cent at Rs 301. DLF and Reliance Communications were the other notable losers.
Technically, the picture is getting better for the Sensex. The index, after having retraced over 61.8 per cent of the recent fall, now looks set to counter the 80 per cent retracement level at 17,060. However, the monthly charts indicate some resistance around 16,940, above which the bulls are likely to have the upper hand. In case of a down move, the Sensex is likely to find considerable support around 16,550-16,380.
The NSE Nifty moved in a band of 228 points, from a low of 4,790 the index surged to a high of 5,018, and finally settled with a gain of 4.23 per cent (203 points) at 4,999.
The Nifty needs to sustain above 5,020 for a continued upmove. On the downside, its decline to 4,870 could see the index weaken further. Currently, the index is well above its short-term and mid-term moving averages, which is a positive sign. However, select oscillators have moved to the overbought zone on the daily charts.
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