Overall bias to remain positive

Despite an intra-day dip to 5,350, the Nifty more or less moved in the trading band of 5,400-5,550. It ended with a gain of 71 points at 5,479 and looks likely to continue its range-bound movement.



The index has closed marginally above its short-term moving average (20 days) of 5,463. The medium-term (50-days) moving average is 5,406. The bollinger bands suggest a trading range of 5,375-5,550.

Momentum indicators are not indicating anything conclusive at the moment. One needs to wait for a clear breakout from the trading band for any new trend to emerge. The bias seems positive for the next week.

The Nifty may face resistance around 5,542-5,562-5,582 next week and find support around 5,416-5,397-5,377.

The Sensex this week moved in a range of 535 points — from a low of 17,820, the index recovered and rallied to a high of 18,356. The index finally settled with a gain of 223 points at 18,221.

Among the index 30 stocks, Bharti Airtel soared over seven per cent to Rs 339. Tata Steel, Reliance Infrastructure, Maruti, ICICI Bank, Sterlite and Hindalco surged four-six per cent. BHEL dropped over three per cent to Rs 2,393. Hero Honda, Reliance Industries and TCS were the other major losers.

According to monthly charts, the Sensex may face resistance around 18,375 and seek support around 17,720-17,560. On the upside, the index may face resistance around 18,500, above which it may jump to 18,745-19,000. However, if the index stays constantly below 18,150, it may re-test 17,700 this month.