The week started with smart gains on Monday, after that Nifty was moving sideways, but again on Friday, we witnessed broad based rally and Nifty broke the resistance level of 3901 and closed very strong at 3917 with a gain of 4.11% w-o-w basis. The Advance Decline ratio was in the favour of bulls as we witnessed lots of action in small and mid cap stocks. This week, the BSE Metal index was the star performer; it gained around 8% w-o-w basis. Most of the sectoral indices

performed in line with the markets and gained around 4% to 5%. However, the BSE HC index underperformed this week and closed with a gain of 1.07%.

Sectoral Speak

On Tuesday, the BSE Metal index reached our mentioned target of 8952 and rallied further; it broke the resistance level of 9115 on Wednesday. It closed at 9303 with the gain of 7.89% w-o-w basis. It is still looking strong and it can test 9657 and above that it may even test the previous high of 9827. Stocks like Tata Steel, SAIL, JSW Steel are looking strong on the charts.

After making a low of 4750 on Thursday, the BSE IT index bounced back sharply and closed at 5071 with a gain of 5.19% w-o-w basis, as it broke the resistance level of 4959. Now it has resistance at 5117 and if it breaks that then it can come up to 5347 in the coming days. Stocks like Satyam, TCS, Wipro, HCL Tech and Tech Mahindra are showing strength on the charts.

On Monday, the BSE CG index broke the resistance level of 9186 and achieved our mentioned target of 9400 on Wednesday. It finally closed strong at 9470 with a gain of 5.75% w-o-w basis; we maintain our next target of 9750 for this index. Stocks like LT, Siemens, Praj Industries and ABB are looking strong on the charts.

Outlook for next week

Nifty started the week with smart gains on Monday, after that it was moving sideways but again on Friday we witnessed broad based rally and Nifty broke the resistance level of 3901, which is also 50% retracement level of the fall from 4245 to 3554 and closed very strong at 3917 with a gain of 4.11% w-o-w basis. Now, it can test the 61.80% retracement level of the above mentioned fall and can test 3981 and if it sustains above 3981 then it can come up to 4044. However, the level of 3965 will play a resistance for Nifty, which is upper band of the one-month-old “Channel”, thus should keep a close watch at that level. For next week the level of 3887 and 3811 will play as strong supports for Nifty.