After exhibiting range-bound movement last week, the markets are likely to move in a narrow range for yet another week with major action seen in the second week of April when the earnings season unfolds.
Keep an eye on global events, which have been one of the prime reasons for the recent volatility in the markets.
The markets began the holiday-shortened week on a dismal note. The Sensex opened with a positive gap of 60 points at 13,346, which also turned out to be the week’s high, and then slipped to a low of 12,833 – a loss of 513 points – before recovering some lost ground towards the end of the week.
The Sensex finally ended the week ended March 30 with a loss of 214 points. While the index was up 134 points for the month, it was down 715 points for the first quarter of the calendar year.
The broader range of the Sensex remains as follows: on the downside, the index may test 11,800, while on the upside the index is likely to face stiff resistance around 13,800 levels.
On a weekly basis, the Sensex is likely to face resistance around 13,270-13,330-13,390, while support on the downside would be around 12,875-12,815-12,755.
The Nifty moved in a range of 135 points – from a high of 3885, the index dropped to a low of 3750 before settling with a loss of 39 points at 3822.
The Nifty is likely to face resistance around 3875-3890-3905 above which the index could rally to 3965 level where one may see considerable profit-taking. In case of a down-move, the index may find support around 3770-3755-3740.
A break of last month’s low, i.e. 3550, could see the index drop to 3400 level.
Source : http://www.business-standard.com