Wkly Tech Analysis: Nifty poised for new highs

The markets last week began on a positive note, and exhibited strength throughout the week with some help from the global markets. Banking and oil stocks were in demand while technology stocks were subdued.

Continued buoyancy in the market should see the Nifty cross its all-time high of 4245 this week, with the index just 30 points shy of the target. Last week, the benchmark touched a high of 4232 before settling down with a gain of 138 points.

One of the main concerns for the markets would be any cooling-off in the global markets, which could have a spillover effect. Dow Jones, Hang Seng and Shanghai Composite have been at all-time highs during the past few trading days.

Once above 4245, the Nifty is likely to rally to 4315 where the index may counter some serious resistance. On the downside, the index is likely to find support around 4155-4135-4115. If the index drops below 4115, then 4085 becomes a crucial support for the current upmove.

The Sensex rallied to a high of 14,353, and is 370 points away from the peak of 14,724. The index finished last week with a gain of 507 points at 14,303.

The 14,000-level will be the key level for the Sensex to sustain the current upmove. On the upside, the index is likely to face stiff resistance around the 14,600-level before rallying to new highs.

The weekly support and resistance level for the index are as follows:- Support 14,125-14,070-14,015, and resistance around 14,480-14,540-14,600.