The markets witnessed a healthy correction last week mainly on account of sustained selling by the foreign institutional investors. The overseas investors net sold stock worth Rs 4,641 crore in the first three trading days of the week, as per data available on the Sebi website.
The Nifty plunged to an intra-week low of 5,677, down 363 points from the weekly high of 6,040, on account of unabated selling. It eventually ended with a loss of 4.7 per cent (281 points) at 5,767. The low of 5,677 was nearly R3 (resistance 3) on the quarterly charts. The index may pull back up to 5,900-6,000 provided it holds last week’s low. In case the index dips below 5,677, it may slip to 5550.
The Nifty has seen congestion around its 50-day daily moving average of 5,750. The Stochastic low at 20.6 is almost in oversold zone. This, coupled with the possibility of short-covering owing to the December series expiry, could aid the upmove. The index is likely to face resistance around 5,905-5,950-5,990 this week, whereas it may find support around 5,625-5,585-5,540.
After opening flat at 20,033 (up one point), the Sensex tumbled to a low of 18,886 - down 1,146 points from the week’s open. The index finally ended with a loss of 4.3 per cent (868 points) at 19,163.
In case of follow-up selling, the index may take support around 18,600 level. Resistance would emerge around the 19,800 level. The weekly support and resistance levels for the Sensex are placed at 18,725-18,590-18,450 and 19,600-19,735-19,875 respectively.
The Nifty plunged to an intra-week low of 5,677, down 363 points from the weekly high of 6,040, on account of unabated selling. It eventually ended with a loss of 4.7 per cent (281 points) at 5,767. The low of 5,677 was nearly R3 (resistance 3) on the quarterly charts. The index may pull back up to 5,900-6,000 provided it holds last week’s low. In case the index dips below 5,677, it may slip to 5550.
The Nifty has seen congestion around its 50-day daily moving average of 5,750. The Stochastic low at 20.6 is almost in oversold zone. This, coupled with the possibility of short-covering owing to the December series expiry, could aid the upmove. The index is likely to face resistance around 5,905-5,950-5,990 this week, whereas it may find support around 5,625-5,585-5,540.
After opening flat at 20,033 (up one point), the Sensex tumbled to a low of 18,886 - down 1,146 points from the week’s open. The index finally ended with a loss of 4.3 per cent (868 points) at 19,163.
In case of follow-up selling, the index may take support around 18,600 level. Resistance would emerge around the 19,800 level. The weekly support and resistance levels for the Sensex are placed at 18,725-18,590-18,450 and 19,600-19,735-19,875 respectively.
