Just when it appeared as if the nifty would move past the 3150 mark, it was pulled down by Satyam Computers fiasco. Bears exploited the situation, thrashing stocks across sectors.Profit booking ahead of quarterly earnings announcement could partly account for the crash in some of the mid cap stocks that had recorded good gains over the past month. Volumes were significantly higher especially on Wednesday when the Satyam swindle came to light.

Now,what to expect next week?
Nifty reversed from an intra-week high at 3,147 to close 173 points lower. The weekly chart of the Nifty has been a one-week-up-one-week-down kind of move over the last four weeks.In other words, the index is confined to a narrow band between 2800 and 3150.The short-term view will be clearly defined only on a break-out beyond this range.

The index can resistance at 2,930 and supports exists at 2800. Short-term is positive as long as Nifty sustains above 2780.A strong close below this level will take the nifty down to 2701 / 2502.

Stock levels for index heavy weights:
Reliance Industries - Near-term resistance would be at Rs 1,208 and then Rs 1,274. The supports exists at Rs 1,090 and then Rs 1,020.The medium-term trend in the stock is sideways between Rs 950 and Rs 1,400.

State Bank of India - A reversal from 1150 can take the stock upward to Rs 1,260 or even Rs 1,300. Fresh long trades should be avoided in this stock on a decline below Rs 1,140. Any close below 1140 would take the stock to Rs.1000.

Infosys is one of the rare few stocks among the majors that have closed with a positive weekly close.However, another strong weekly close above Rs.1200 is required to reinforce this positive outlook. Subsequent targets for the stock are Rs 1,260 and Rs 1,307. Near-term supports for the stock are at Rs 1,140 and then Rs 1,060.

ONGC has failed to move past the resistance at Rs 740 is negative in medium-term view.The down move from the Rs 810 peak can now drag the stock lower to Rs 620 again. The stock has strong long-term support around Rs 600.Short-term supports for the stock are at Rs 668 and then Rs 627.Resistances in the week ahead would be at Rs 712 and Rs 734.