The index could not bank on the gains of the previous week because a considerable bear hammering saw the index drifting lower as the week progressed.
BHEL was the major loser, down almost 22 per cent at Rs 2,092. Larsen & Toubro, HDFC, Mahindra & Mahindra, DLF and Reliance Energy shed 12-15 per cent each. Ranbaxy and Satyam, however, gained 4 per cent each.
More than technicals, the market trend will depend a lot on the earnings season, which will start the next week. The government's and the Reserve Bank of India's (RBI) possible measures to combat inflation are also likely to have a major bearing on the market sentiment.
Technically, the last week's low of 15,300, coupled with a near support of 15,100 and a further deeper support of 14,670, looks promising. A break of 14,670 could see the index dipping to 14,200 to 13,200 levels.
This week, the Sensex is likely to find support around 14,985-14,875-14,760, while resistance on the upside could be around 15,700-15,810-15,925.
The NSE Nifty moved in a range of 318 points before settling with a loss of 295 points at 4,647. The Nifty is likely to move in a range of 4,500 to 5,000 (bollinger bands) till the breakout on either side.
A narrower range suggests a possible breakout in the coming days. This month, the index may move in a broad range of 4,270 to 5,200.
