After overcoming the futures & options expiry pressure and uncertainty of the outcome from the US FOMC (Federal Open Market Committee) meet, the markets rallied smartly on Friday as focus shifted to earnings season.

The bears aggressively defended the 14,540-14,560-resistance zone on the Sensex for the first four trading days of the week. However, once out of the woods, the bulls flexed their muscles on Friday.

Apart from any major negative development over the weekend, the Sensex is likely to record a new high early next week (which it missed by just a point on closing basis last week). The index last week gained 183 points to end at 14,651. The market breadth for the week was fairly positive. Advancing shares managed to outpace declining stocks on four of the five trading days on the BSE.

The current momentum suggests more upside for the market. On a short-term (monthly) basis, the Sensex is likely to rally to 15,000, with some resistance around the 14,930 level. On the downside, the index is likely to find significant support around 14,370-14,200 level.

On a longer-term (three months) view, the index has a crucial support at 13,800, which if violated could trigger a fresh downturn in the market. On the upside, the index may target the 15,500-16,000 area.

The Nifty moved in a restricted range of 85-odd points, and finally settled with a gain of 66 points at 4318.

This week, the index may up to retest its recent high of 4363, while on the downside, the index is likely to find support around 4265-4285.

The Nifty in the short-term may rally to 4,520 on the upside, where the index is likely to counter stiff resistance. On the downside, the index has strong support around 4150 levels.

Just like Sensex, the CNX 100 index too failed to clear its resistance zone around 4220 in the first four trading days of the week. However, the index eventually finished the week with a gain of 75 points at 4249.

The index is likely to target 4,375 on the upside. This week the index may move in the range of 4,190 to 4,305. The 3,800-mark would be crucial for the long-term, while 4100-mark is the support level for the short-term.