WEEK AHEAD - Market may witness volatility

The market is expected to see high volatility in the coming week on account of mixed views.

Profit-booking may cap the upside from this level.

A section of the market expects sideways movement on the bourses, as FII-participation will be limited on account of “year end” factor, taking its toll on volumes. Foreign fund managers will be on a holiday for Christmas and year-end from about 20 December 2006.

Market men will also be closely eyeing third installment of advance tax paid by corporates and FII allocations for India for calendar year 2007. The third installment is due on 15 December 2006. The corporate advance tax payment will provide a broad outline of Q3 corporate results.

Technical analysts feel that 3,900-3,920 is a key resistance level for Nifty. Only a decision close to that level will indicate resumption of uptrend, they say. Nifty also has strong support at 3,700 level, market participants feel.