Resistance seen at 19,550 level

Taking cues from global markets, the Sensex and the Nifty moved from strength to strength during this holiday-shortened week. The Bombay Stock Exchange benchmark index, Sensex, touched a high of 18,823.17 and finally settled at 18,800, a gain of 3.2 per cent (578 points).

Among the index stocks, Tata Steel and ACC zoomed around 10 per cent each to Rs 593 and Rs 980, respectively. SBI, Hindalco, Jaiprakash Associates, ICICI Bank, Jindal Steel, Sterlite, Infosys, TCS and Mahindra & Mahindra were the other major gainers. Reliance Infrastructure, however, slipped 2 per cent and ITC was down a per cent.

The Sensex is extremely close to the 19,000-mark. The index may face some resistance around the 19,000 and 19,550-levels, which are of significant resistance as per the yearly charts. The upward move will remain intact as long as the index holds the 18,500 and 18,375 support.

The National Stock Exchange’s Nifty moved in a band of 168 points. It touched a high of 5,647 and ended with a gain of 161 points at 5,640.

The index has closed at the higher end of the trading band, and may continue to trade higher along the higher end of the trading band. However, given the strong gains, some consolidation can’t be ruled out.

Also, needs to watch out for the Reserve Bank of India policy meet on September 16, which could turn out to be a major trend decider for rest of the month. Technically, the Nifty will remain bullish as long as the index sustains above 5,525. Upside targets for the Nifty are at 5,700 and 5,790.