Wkly Tech Analysis: Nifty may move up to 4,500

The stock market staged a remarkable comeback, thanks mainly to the improvement in global markets coupled with better-than-expected Q1 numbers so far. So ferocious was the pullback that major indices, the Sensex and the Nifty, recovered nearly all its losses suffered during the Budget week.

The Sensex began the week on a shaky note with a loss of around 100-odd points, however, it rallied later to a high of 14,801 to finish the week with a major gain of over 9 per cent (1,241 points) at 14,745.

Among the index stocks — Realty major DLF zoomed nearly 20 per cent to Rs 279. ICICI Bank, Tata Motors, Hindalco, HDFC and Jaiprakash Associates soared 14-18 per cent. 18 out of the 30 index stocks ended with gains in excess of around 9 per cent.

The Sensex found support around its weekly support level of 13,200 and then bounced back. Although the rally now looks convincing, the index needs to cross its recent high of 15,098 for further upside. Beyond 15,100, the index may possibly rally up to 15,800 levels.

The NSE Nifty moved in a range of 472 points, from a low of 3,919, the index surged to a high of 4,390, and finally ended with a gain of 9.3 per cent (371 points) at 4,375. The index is likely to re-test its recent high of 4,480, above which the index may rally up to 4,550.

Broader trend suggests that the index may possibly move in a range of 3,900-4,500 in the next few weeks before making a fresh breakout.