Sensex has support at 10900: Anagram
Despite three brave attempts the Sensex could not clear the resistance zone we talked about in our last weekly outlook. We raise the bar slightly and make it 11400. The Index needs to close above this mark to effectively break away from this clutter. On the downside, there is support at 10900 and as long as the benchmark remains above this mark, it will always be within knocking distance of a new intermediate high. A similar range for the Nifty is 3530 and 3200.
As the market consolidates, the direction this week will be given by the banks. They have put on a lot of make up ahead of the RBI meet and key results. Whether its action or pack up will be decided by the street’s response to the results and not the policy per se. While the frontline stocks consolidate, action would be on some of the cash stocks, which we intend to pay attention to. Technically, Ganesh Housing and S.Kumar look good.