Indices may revisit June highs soon

Better-than-expected first quarter numbers, steady foreign institutional inflows coupled with positive global cues helped the market post smart gains for the second consecutive week. The Sensex, which gained over 1,200 points in the preceding week, ended the week with a gain of over 600 points.

The Sensex began the week with a bang, up 446 points on Monday. The index, thereafter, consolidated and finally ended with a gain of 634 points at 15,379. In the process, the index moved in a range of 632 points, hit a high of 15,419 and a low of 14,787.

Among the index stocks, DLF and Tata Motors zoomed over 18 per cent to Rs 333 and Rs 316, respectively. Maruti, Jaiprakash Associates, Tata Steel, Hindalco, TCS and Sterlite gained 11-16 per cent.

The Sensex is now well-poised to target its June high of 15,600. Above which, the index may spurt to 15,825, and further up to 16,800 in the next few weeks. On the downside, the index is likely to find support around 15,135-14,990 levels, a break below which could see the index slide to 14,500.

The NSE Nifty moved in a range of 201 points, from a low of 4,378, the index rallied to a high of 4,579, and finally settled with a gain of 194 points at 4,569. The index is moving towards its June high of 4,693 too, above which it may rise to 4,950. On the downside, the index may find support at 4,490-4,445.

The Nifty is currently moving above its all three averages — short-term, mid-term and long-term. However, the mid-term (45 days) average is currently above the short-term (15 days) daily moving average, which at times signifies consolidation or range-bound movement.