Wkly Tech Analysis: Multiple resistance ahead for Sensex

Markets were in a buoyant mood with key indices posting gains throughout the week. The Sensex reclaimed the 16,000-mark on Monday, and continued its upward journey to finish with a gain of 3.7 per cent (575 points) at 16,264. The BSE benchmark index touched a fresh 15-month high of 16,435 during the week.

Among the index stocks — Hindalco zoomed over 18 per cent to Rs 124. ICICI Bank, Sterlite, Tata Steel, SBI, Tata Motors and Reliance surged 8-12 per cent each. On the other hand, Hindustan Unilever shed 6.3 per cent to Rs 256. Maruti, Mahindra & Mahindra and DLF declined 4-5 per cent each.

Positive cues from the global markets improved sentiments and strong industrial growth numbers might become a trigger to support the current upmove going forward. As mentioned last week, the Sensex is now likely to face resistance at multiple junctures. Currently, the index is testing the 16,400 resistance, above which it will target 16,800, and 18,000 further ahead. In case of a downside, the index is likely to find support around 16,170, below which the index may dip to 15,950.

The NSE Nifty moved in a range of 210 points, touched a high of 4,889, and finally settled with a gain of 3.2 per cent (149 points) at 4,830. The Nifty seems to be on course to its target of 4,950-5,000.

From a slightly medium to  longer term prespective, the Nifty, after crossing the 5,000-mark, will aim for its next target around 5,350 and 5,500.