Wkly Tech Analysis: Bulls to stomp Nifty above 5,350

The markets witnessed choppy trades during the week, thanks to the anxious times Greece is going through. The Sensex touched a high of 17,813 early in the week. Thereafter, the index dropped to a low of 17,278. The BSE benchmark index finally settled with a loss of 242 points at 17,563.

As we enter a holiday-shortened week, markets will continue to remain choppy, given the global overnight developments. Markets are shut for trading on Monday and Thursday next week on account of local festivals.

The monthly fibonacci charts indicate the Sensex is trapped within the 17,250-17,700 range. A breakout in either direction should set the tone for the next move.

However, the bias currently remains bullish, as the index has given a buy signal on the quarterly charts. According to the latter, the Sensex has good support around 17,200, and a breakout above 17,750 can lead to upside targets of 18,150 and 18,500.

The weekly charts indicate support around 17,350-17,230 and resistance around 17,750-17,900.

The NSE Nifty moved in a range of 158 points, from a high of 5,360, it dropped to a low of 5,202 and eventually ended with a loss of 77 points at 5,284.

The short-term charts indicate a positive bias, but a slightly long-term view indicates the index continues to remain in the pattern of lower tops and lower bottoms right from late November 2010. Going by this, the Nifty is likely to face strong resistance around the 5,400-5,500 range.

The current up move may halt around the 5,500-level. After that, we could either enter a phase of prolonged consolidation in the range of 5,000-5,500 or the index could once again drift lower to re-test the 4,700-odd levels.

In the extreme short-term, the charts indicate the bulls are likely to get stronger only above 5,350. And, on the flip side, the bears will get stronger as and when the index breaks below 5,180.