Markets Last Week

Sensex (11918) - Nifty (3471)

Nifty played on a firm wicket gaining 1% again hitting an intra week high of 3490.It was a quite week without any major announcements and everyone was more interested in guessing about sensex hitting 12000 mark again though it didn't obliged, hitting an intra week high of 11983 before reversing.This is the seventh consecutive week of sensex registering a positive close gaining 1.2%. There was a shift of focus from frontline stocks as Midcap index gained 4% and smallcap index gained 3.7%.

OUTLOOK
Markets are expected to be range bound moving around in a tight range this week. There is a slowdown in momentum in the short term although the weekly charts are not showing any signs of weakness thereby indicating strength in the medium term.There is a resistance for nifty at 3495 levels as it reversed from that level last week.
There is an adage which goes "When confused, the best thing to do is nothing". However,this adage is not for high risk takers but risk-averse investors.

Reliance
As envisaged last week, RIL moved in a tight range of 1110-1145 last week.It has been consolidating in this range now for the last two weeks which is a positive sign.Any breakout with good volumes from this range can easily take it to 1225 mark and beyond.

Infosys
This stock hit an intra week high of 1855 before reversing the trend and sliding below 1800 to close at 1794 for the week.Some caution is required here as the stock has come down from overbought territory and after a good runup in the past few weeks.