The weekly action of the Indian market resembled a tug of war contest between two teams where bulls overpowered bears on the back of a strong rally on Friday. The Nifty closed at a lifetime high, while the Sensex managed to close above the psychological 3,7000 mark. Technically market is in uncharted territory and there is no significant weakness visible.
Be selective on new buys
The immediate weekly supports for the Nifty index are pegged around 11200-11150 points below which 11100-11070 will act as the next meaningful supports. Whereas on the upside, if the index manages to cross and sustain the weekly projected upside resistances around 11300-11350, then an extension of the current rally towards 11400-11500 may also be seen.
The participation of mid and small cap stocks encouraging, as the Nifty midcap and smallcap posted weekly gains of 1.8 per cent and 2.4 per cent, respectively. As the market is in a clear uptrend, the overall current market conditions are conducive for new purchases but remain selective.
- Hans Research Team