Indian Indices end last week of 2012 on cheerful note - Angel Broking

In-line with global cues, our benchmark indices, the Sensex and the Nifty, opened quietly on Monday. After a Christmas break on Wednesday, we witnessed a decent intraday rally in our market. However, due to December month derivatives expiry, some volatility was seen during the week. As expected, the cash based volume activity was very low during the week and indices oscillated within the mentioned trading range of 19613 / 5965 - 19149 / 5823 (Sensex / Nifty). During the week, the Oil & Gas sector, mainly led by index heavyweight - Reliance Industries, performed well. Realty and Capital Goods stocks too were among the gainers; whereas last week's outperformer, the Metal sector remained quiet throughout the week. The Sensex and the Nifty ended the week with a decent gain of 1.05% and 1.04%, respectively.

The first and the last week of the year 2012 both ended on a cheerful note. Despite so many ups and downs, our benchmark indices eventually managed to wrap up the year with a massive gain of more than 25% over the previous year's closing. Compared to the previous week's closing, there is no significant change in the chart structure. Hence, we continue to mention the narrow trading range of 19613 / 5965 - 19149 / 5823.

Only a sustainable breakout on either side would give a clear direction for the near term. A move beyond 19613 / 5965 level would result in an extended rally towards 20050 - 20218 / 6000 - 6070 levels. Conversely, a closing below the lower range of 19149 / 5823 may trigger short term pessimism in the market. In such a scenario, we may witness a correction towards 19100 - 18930 / 5806 - 5755. These levels are the 38.20% and 50% Fibonacci retracement levels of the rise from 18255 / 5548 (low on November 20, 2012) to 19612 / 5965 (high on December 11, 2012), respectively.

However any adverse developments in the US, with regards to the 'Fiscal Cliff' may result in enhanced volatility in the market.

Considering the overall weekly chart structure we continue to remain positive on the market and any corrective move towards 19000 - 18900 / 5800 - 5750 levels should be used by positional traders as a buying opportunity.

Source : Equity Bulls

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