Never confuse a single defeat with a final defeat – Winston Churchill
Indian Markets Last week: Nifty moved in a band between 2750 and 2870. Going ahead, the next week seems to be a positive one at least in the first half. The short-term up trend from 2661 can continue to take the index to 2950 /3000.Short term reversal can be expected from these levels.If the rally continues, Nifty will test the resistance band between 3070 and 3090.Supports for the week are at 2760 and 2660.The short term is positive as long as the index trades above 2760.
Global markets: There was a strong rally in global equities, last week and that made most markets close with hefty gains. Volatility came down after a sharp spike in the early part of the week.The 200 points spurt in Dow Jones on Friday took the index well above the critical 8000 level.And on Monday, the most anticipated bailout package is to be announced, which could decide the further course of the markets.
Stock Levels for index heavy weights:
Reliance (1343): The stock moved in a range before ending with up just Rs 17 of weekly gains. There can be an upside rally upto Rs 1,400. But the area around Rs 1,400 is a strong resistance where reversal can be expected.Supports are pegged at Rs 1,250/1200.The stock has not broken out this range for the past 3 months.
Infosys (1280): The stock did not break above the resistance at Rs 1,300. A downward reversal from here can pull the stock down to Rs 1,220/1160.The medium-term range for the stock is between Rs 1,070 and Rs 1,300.
Sbi (1118): SBI closed lower this week with 3 per cent loss.The 200 day moving average at Rs 1,180 will act as a strong resistance.The near-term view will turn positive only on a close above Rs 1,200. The long-term support is available at Rs.1000.