Breakout for indices on cards

Markets followed global cues this week as they started on a negative note and recovered partially towards the close of the week. The Sensex moved in almost the same trading band as that in the preceding week. The index touched a high of 15,923, and a low of 15,357, before closing with a loss of 233 points at 15,689.

Among the index stocks — Reliance Communications zoomed 10 per cent to Rs 292 followed by Maruti, up nearly 9 per cent. Hero Honda, Hindustan Unilever, Mahindra & Mahindra and Tata Motors were the other major gainers. On the other hand, Bharti Airtel plunged over 6.5 per cent to Rs 406, and Jaiprakash Associates shed over 5.5 per cent at Rs 218. BHEL, Reliance, Hindalco, Sterlite, Tata Power and Larsen & Toubro were the other major losers.

Going forward, there are multiple key levels which one needs to watch. Currently, the 15,900 level is the nearest resistance for the Sensex, above which the index is likely to spurt up to 16,200 and further up to 16,400-16,800. On the downside, the index is likely to find the nearest support level at 15,350, below which the index may slip to 15,150. Further down, 14,850 and 14,500 would be key support levels, below which the markets may witness heavy long unwinding.

Next week, the market is likely to attempt at a breakout.

The NSE Nifty moved in a narrow range of 156 points. From a low of 4,580, the index spurted to a high of 4,736, and finally settled with a loss of 52 points at 4,680.

The index has been flirting with the 4,730-level for quite some time now. A strong breakout could see the index rally up to 4,950.

On the downside, the 4,580 level needs to be closely watched as a break below this level could see the index slip to 4,470, and further down to 4,350.