Upmove likely to continue
The markets ended the week and the month on a robust note thanks to the sharp rally on Friday. The Sensex surged to a high of 17,448, and finally ended the week with a gain of 2.7 per cent (457 points) at 17,430.
Among the Sensex stocks, Tata Power zoomed almost 11 per cent to Rs 105, and Jindal Steel soared nearly nine per cent to Rs 470. Maruti, ICICI Bank, Tata Steel, NTPC and BHEL rallied over five per cent each. On the other hand, Tata Motors and Bharti Airtel slipped around two per cent each.
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As we are at the start of a new month and quarter, it would be worth taking a look at the monthly Fibonacci charts. This month, the Sensex may look to seek support at around 16,780-16,375, whereas on the upside the index can face resistance at around 18,080-18,485. The quarterly charts indicate a broad range in between 16,280-18,580.
Next week, the Sensex may seek support at around 17,190-17,040, and face resistance at around 17,670-17,820.
The NSE Nifty moved in a range of 190 points. The index touched a high of 5,286, and a low of 5,095, and finally settled with a gain of 133 points at 5,279.
The short-term trend for the Nifty is positive as the index has closed above its short- and medium-term moving averages. Also, the short-term moving average is above the medium-term moving average. Moreover, the MACD too, is positive on the daily and weekly charts.
Hence, the markets are now likely to continue the upmove, and the recent gap-up at 5,190 become the immediate major support level for the Nifty. The bias will continue to remain positive as long as the index sustains above 5,190. On the upside, the index may now target 5,340-5,380.