Global markets too, recovered after a initial setback in the beginning of the week. Dowjones index recovered from an intra-week low of 6516 to close the week with a whopping 10 per cent gain. European indices such as the FTSE, CAC and DAX recovered from multi-year lows on Monday to close with weekly gains of about 10 percent. Most of the Asian indices gained about 5% for the week.
So, what to expect next week ?
The near-term resistance for the Nifty is at 2760/2800. Profit booking is expected around these levels. The 50-day moving average at 2810 adds to its significance. If 2800 isn't taken out, it will imply that the near-term outlook for Nifty stays negative and the index can reverse down to decline to 2650/2550.
The current up-move is one of the sharp bear market rallies. A close above 2810 will make the near-term view positive for Nifty. Such a move will indicate that the index can move higher to 2900/3000 over the medium-term. On the other hand, a close below 2500 will take it down to 2250. Big move on the either side can be expected if either of the levels get breached.
Index heavy weights:
Reliance Industries: RIL witnessed a sharp up-move in the last two sessions that enabled it to gain about 10 per cent last week. RIL faces strong resistance at Rs 1,300/1320.Like nifty , RIL is also trading in a band of Rs.1150-1300.
State Bank of India: SBI was weak and the stock declined to Rs 896 last week but staged a recovery to close at 950.A strong close above Rs 1,000 is required to make the short-term outlook positive for this stock.A downward reversal is expected from Rs 1,000,which could take it down to 900/860.
Infosys : The stock closed the week with 6 per cent gain. The stock has strong resistance at Rs 1,320. A downward reversal from Rs 1,320 will pull the stock down to Rs 1,200/1,150.
