Market likely to be range bound this week

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Mumbai, Oct 14: Following the eight straight week of continued rally to new hights, last week the bulls striked back and now it seems that to go far-up beyond the limit of 19k is not an easy task unless the forth comming results and foreign inflows support the indices, market analysts observed.

The analysts maintained that the market seems to be range bounded for some time and factors which would decide the market trend in comming weeks will mainly include the quarterly announcements including TCS, Reliance, Wipro, Reliance Energy and ACC.

Union Finance Minister has also expressed his worries on the unexpected rise in the sensitive index. His remark on Friday teriggered a 200 point dip. Simultaneously, it was also observed that the withdrawal, for the time being, of the UPA government from the Indo-US Nuke deal talks, rulling out of mid-term poll and good industrial data did not worked for holding the market.

Bulls striked back by the end of the last week, Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) index, both ended at a marginal dip.

However, the Sensex last week witnessed a gain of 3.6 per cent, up 646 points, ended at 18,419 taking a down move on Friday. Whereas, in the past eight weeks, the index had gained a whopping 30.2 per cent, up 4,228 poits.

Market analysts have a mixed views on the market correction as the short term target of 19K for the Sensex remains intcat. Moreover, the key support levels can give the idea of any trend reversal, market analysts said.

According to the analysts, the Sensex is likely to to find key support around 17,825-17,640-17,450 this week and may face resistance around 19,015-19,200-19,385. Similarly, Nifty made a bearish pattern on Friday and for this week it is likely to face resistance around 5640-5700-5770.


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