Wkly Tech Analysis: Nifty likely to face resistance at 5,800

Among Sensex stocks, BHEL rose 6.5% to Rs 263 this week

The Sensex continued its north-bound journey for the fifth straight week, ending 0.9 per cent higher at 18,938. In the last five trading weeks, the BSE benchmark index has surged 8.6 per cent (1,508 points).

Among Sensex stocks, BHEL rose 6.5 per cent to Rs 263 this week. Tata Motors, State Bank of India, Hindalco, Hindustan Unilever, Larsen & Toubro and Dr. Reddy's were other major gainers. Bajaj Auto and Cipla fell about four per cent each to Rs 1,751 and Rs 364, respectively. Hero MotoCorp, HDFC and Tata Power were other prominent losers.

According to the monthly Fibonacci chart, the bias is likely to remain positive as long as the Sensex remains above 18,750-odd levels; if the index breaches 18,750-levels consistently, the index could slip to 18,200-odd levels. On the upside, the index can rally to 19,400-19,600 levels. Next week, the Sensex is likely to seek support at 18,800-18,700, while it could face resistance at 19,100-19,200.

The NSE Nifty swung in a range of about 900 points, thanks to the erroneous trade on Friday due to which the index slipped below its circuit limit in intra-day trade. From a high of 5,815, the index touched a low of 4,888. The NSE index finally settled at 5,747, a gain of 44 points. The Nifty continues to trade firmly above its short-term and medium-term moving averages, both on the daily and the weekly charts. According to the daily charts, the index is likely to get support at 5,700-odd levels. The weekly charts indicate major support at about 5,585.

The moving average convergence/divergence on the daily charts appears to be tiring. Therefore, watch out for resistance closer to the recent highs of 5,800-odd levels. In case of positive news, the rise may stretch to 5,870-odd levels. Next week, the Nifty may seek support at 5,680-5,640, while it may face resistance at 5,810-5,850.