A bout of volatility was witnessed as key benchmark indices
continue to hover in positive terrain in afternoon trade. The domestic
markets cut most of its intraday gains to end marginally higher on Friday but
recorded their first weekly gain in four. The S&P BSE Sensex ended
the day at 25868, up 26 points. The index had reclaimed its key psychological
level of 26000 in the afternoon trade. The Nifty settled at
7856, up 13 points. The 50-share index had topped its crucial 7900-mark earlier
in the day. Market breadth remained
positive with 19 of the 30 Sensex components ending the day in green.
Volatility has become the hallmark of this market. We
haven't seen real strength in the market even though such rallies do come; it's
mostly an opportunity to sell into the rallies. The rally could be short-lived,
with volatility expected next week ahead of the derivatives contracts expiry on
November 26. The 7880-7900 remains the critical resistance and the bulls must
absorb the supply in this region and move decisively above this zone for any
show of strength. On the lower side, 7810 is the immediate support below which
7775-7790 is an important demand line. 7725 is now a key support and if
breached decisively may bring in panic supplies and may lead to 7705, 7665
levels.
Resistance: 7780, 7900, 7930
Support: 7750,
7720, 7690
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