LEVELS FOR NIFTY & BSE

SENSEX (21,079.7)

In the midst of key events and volatility, the Sensex zoomed 1.7 per cent or 364 points for the week. However, it is now testing a key resistance at the 21,000-level. A robust start to next week can emphatically surpass this resistance and take the index higher to 21,206 and then to 21,500 in the coming week. Failure to move higher can find base at the important supports of 20,700; 20,300 and 20,137.

The index can confine itself to trading in the band between 20,000 and 21,500 for a few more weeks. This sideways movement will be a positive sign from a long-term perspective.

For the index, the medium-term trend is up. This trend will remain in place as long as the index trades above 19,850 levels. A fall below this level will threaten the medium-term trend. As mentioned in this column last week, the next key supports are placed at 19,405 and 18,955.

NIFTY (6,274.2)

The Nifty rallied 105 points or 1.7 per cent in the previous week. It managed to rebound from its 50-day moving average and close well above this average line. However, it is now facing key resistance at 6,300-level. A strong breakthrough of this resistance can take it northwards to 6,350 and on to 6,415 in the ensuing weeks. But, any inability to surpass this resistance level can see it slip to find supports at 6,166, 6,050 and 5,973. The next important support below these levels is at 5,905.

The index can prolong its sideways movement for some more weeks in the zone between 5,950 and 6,400. This move will be positive for long-term prospects. The medium-term trend is also up for the Nifty, and as long as it trades above 5,920 this trend remains in place. A tumble below this level can activate supports at 5,770 and 5,618 levels.