What's in store for indices and stocks next week

Special to Firstpost

S&P CNX Nifty (5,516.75): The Nifty moved in line with expectations and also hit the target of 5,590 that was mentioned last week. The failure to get past the prior swing high of 5,605 is a sign of weakness.

[caption id=“attachment_20274” align=“alignleft” width=“380” caption=“Hindustan Unilever was in an uptrend.”]  [/caption]

The index could now drift to the immediate support at 5,390. The short-term trend would be bearish until the index moves past 5,605. A fall below the major support at 5,300 would lend momentum to the downtrend.

BSE Sensex (18,376.48): The Sensex on Friday hit the target of 18,615 mentioned last week. While the sharp rally in the early part of the week was impressive, the failure to get past the swing high of 18,725 is a cause of concern.

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The sequence of lower swing highs and lower swing lows is still intact. Unless the index moves above 18,725, it will be vulnerable to a test of the short-term support at 18,080.

The short-term downtrend will gain momentum on a close below the major support at 17,780.

**Hindalco Industries Ltd (Rs 189.40): ** The Hindalco stock has been in a downtrend after completing a “double-top” pattern on 2 April. The price pattern in the past few days indicates that the stock could ease to the next support at Rs 176.

A rally to Rs 192 or beyond would be a shorting opportunity, with a stop-loss at Rs 203. A fall below Rs 176 would lend momentum to the downtrend and the stock could then fall to the major support at Rs 168.

Unless the stock moves past the swing high of Rs 208, it would be vulnerable to a test of the major support at Rs 168.

Hindustan Unilever Ltd (Rs 318.30): The stock is in an uptrend and could rally to the resistance at Rs 335. A fall to the short-term support at Rs 314 would be a buying opportunity.

The stop-loss for long trades may be placed at Rs 295. A breakout past Rs 335 could propel the stock to the major resistance at Rs 351.

(The views and recommendations featured in this column are based on a technical analysis of historical price action. There is a risk of loss in trading. The author may have positions and interest in the instruments featured in the column.)