Weekly Technical Analysis - Sector Indices

Cnx Bank Index: 6177 — The index is trading around the support levels near the 6035-6030 band. 200 dma = 6035. Declines during last week’s trading saw the index finding support around the 200 dma. The level of 6030 is the 50% retracement level of the rally from the low of 4837 (16 March 07) to the recent high of 7209 (20 July 07). Resistance level is around the 10 dma around 6377 and 6568. Lower support is around 5745. Conclusion: Intra-week pullback toward 6377 can be expected with support around 6030.

Cnx IT Index: 4580 — The index has closed below the lower end of the 5513-4925 consolidation band. Close below the 4925 levels suggests weakness. The resistance levels are around 4652-4925. Support levels are around 4439-4206. The level of 4206 is the 62% retracement level of the rise from low of 3193 to the recent peak of 5857.

Conclusion: Intra-week, trade a breakout from the 4652-4439 range.

Bse Capital Goods Index: 12622 — The index has closed around the upper band of the downward sloping channel. Break above the upper end at 12640 will see the index exhibit strength and rise toward 13267 (high of 9 August 07). Support is around 12256-11913. Conclusion: The index should exhibit strength during current week’s trading with support around 12256.

Bse FMCG Index: 1879 — The index has been stuck in a 1767-1941 range for the last four months. The index has closed above the 200 dma (1867); sustaining above the 200 dma should see the index firm up from current levels. Support is around 1854 for the current week’s trading. The index faces resistance around 1986 levels.

Conclusion: Expect rise toward 1986.

Bse Oil & Gas Index: 7517 — The index is stuck in a trading band of 7266-7685 for the last five trading sessions. Support is around 7315 levels. On daily charts Stochastic Oscillator (5,3) has turned up from the oversold zone with positive divergence. This suggests the index can see a rise toward 7685 levels. Conclusion: Expect intra-week rise toward 7685 levels.