It would be best to see the movement over the coming week to decide on the right count. These are few of the likely trajectories, Strong move past 15,000 would take the index to the resistance zone between 15,600 and 15,800. Reversal from this zone will result in a range-bound move between 13,000 and 15,800 for a few more months.
Break-out above 15,800 would take Sensex to 16,200 or beyond.
Failure to move beyond 15,000 early next week will bring the bears out of their lairs and they would drag the index down to 13,300 or 12,730. This would imply that the correction would have legs.
The preferred view is the first one of a range-bound move over the next few weeks that continues to give traders a torrid time as the monsoon uncertainty and earnings season plays out.
Sensex is poised close to the key short-term resistance zone between 14,600 and 15,000. A reversal from here can take the index down to 13,830 or 13,200 over the short-term. A strong close above 15,000 will give the next target of 15,440 and 15,600 to the Sensex.
Also see: Sensex this week: Results, global cues to determine trend
Text & Image: Business Line