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WEEKLY TECHNICAL ANALYSIS

The markets overcame a mega event - Budget 2008 - and ended on a positive note last week. The Sensex, which began the week positively, witnessed considerable volatility on Friday as the Finance Minister read out the budget speech.

The index moved in a range of 999 points for the week, from a high of 18,137 to a low of 17,138, before settling with gains of 230 points at 17,579.

Among the index stocks, Maruti zoomed over 13 per cent to Rs 767. BHEL and Mahindra & Mahindra soared over 10 per cent each to Rs 2,058 and Rs 629 respectively. HDFC and Ranbaxy gained 9 per cent each at Rs 2,574 and Rs 410 apiece. DLF, on the other hand, slumped 6 per cent to Rs 829.

The Sensex's movement last week was mostly sluggish and did not reveal any change in trend. Hence, we maintain our view of a range-bound movement between 16,000 and 19,000 until a breakout in either direction.

This index is likely to face resistance around 17,800-18,080-18,200 and support around 17,200-17,080-16,960 during the week. The key levels to watch would be 16,650 on the downside and 18,500 on the upside.

The Nifty moved in a range of 313 points. From a low of 5,055, the index moved up to a high of 5,368 and finally ended with gains of 113 points at 5,223. While continuing to trade above its 200-DMA (daily moving average), the Nifty stopped at its previous week's high of 5,368.

The index is now marginally higher than its 20-DMA (short-term) of 5,196, but below its 50-DMA of 5,550. The Nifty will trade in a broad range of 4,800 and 5,700, but may face resistance around 5,340-5,380-5,420 and support at 5,100-5,070-5,030 in the week.