Market Outlook For the Week:

On the daily chart NIFTY has closed below it’s important short term averages (20 DMA/50 DMA). Through out the week volumes were low showing a sharp drop from that of previous week. Technically, price moves are suggestive of NIFTY consolidating between levels of 4000~4600 (600 points range) while volume trend in particular is suggestive of sell-off exhaustion. With Inflation and EXPIRY on same day of the week (Thursday) we may see some strong anticipatory stock specific action.

All in all, levels of 4220 and then 4000 will act as a strong support while on higher side levels of 4420 and then levels of 4600 will act as strong hurdle going ahead.  Global Cues and CRUDE price may drive the index movement for most part of the week. 

Sectoral Indices

BSE HEALTHCARE (4297.64)

We saw BSE HEALTHCARE index moving up by 15.64 points or +0.37% to end the week at 4297.64 levels. Currently this index is trading close to its resistance levels of 4350 levels. On lower side levels of 4100 will continue to act as strong support. In this sector RANBAXY having highest weightage of 15.96% continues to see good support around levels of Rs.480/- while on higher side any close above levels of Rs.540/- will be positive for the stock. While CIPLA with weightage of 13.97% is trading very close to its resistance level of Rs.248/- and any "decisive" close above this level should be positive for the stock and stock may move closer to levels of Rs.280/- in near term.

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