Wkly Tech: Steady inflow props up the market

The Sensex, after a positive start, consolidated at higher levels. The index, from a low of 8,697, rallied to a high of 9,120, and finally settled with a gain of 2.4 per cent (210 points) at 8,967.

Among the index stocks, Jaiprakash Associates, DLF, Hindalco and Sterlite soared 12-13 per cent each. Reliance Communications, ONGC, Tata Steel, Ranbaxy, ICICI Bank, Reliance and NTPC surged 4-8 per cent each. However, Larsen & Toubro, ACC and Grasim shed 2-5 per cent each.

The positives from the last week were the steady inflows from the foreign and domestic institutions that supported the index. However, on the negative side, there was the failure of the index to sustain at the higher levels.

This week too, the market may exhibit range-bound movement in more or less the same range of 8,700-9,130. The bulls would definitely have the advantage above 9,130. However, this seems less likely. On the downside, if the index breaks 8,700, then it is likely to test its crucial support zone of 8,435-8,470, below which bears will have the upper hand.

The NSE Nifty moved in a range of 134 points. From a low of 2,702, the index moved up to a high of 2,836, and finally ended with a gain of 3.2 per cent (88 points) at 2,807. This index, too, is likely to exhibit sideways movement, in more or less the same range of 2,725-2,860.