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: The week was very volatile as we saw the indices breakout of the ten-day consolidation on Tuesday and than we saw the indices give back most of these gains on Thursday and Friday. This resulted in the indices ending the week with small losses, as the Sensex ended 0.55% lower and the Nifty lost 0.18%. The CNX Mid Cap index ended 0.60% higher. Among the sectors, the largest loser was the BSE Metals sector, ending 4.55% lower and was followed by the BSE Consumer Durables, which lost 1.42%. On the bullish side, the BSE Bankex was the largest gainer, ending 2.33% higher and was followed by the BSE Power sector, which gained 0.89%.

The indices exhibited a higher intermediate bottom in the last week, but there was no follow-up to the strong gains seen on Friday. Global cues and the stock markets around the world have already dropped into an intermediate downtrend and this could result in our markets following suit. In the past few weeks, the Sensex has been staying between 14,000 on the lower side and 15,580 on the upper side. Likewise, the Nifty has been staying between 4,200 on the lower side and 4,650 on the upper side.

This is a large range and as long as the indices stay within this range, the intermediate trend could be defined as sideways. The Bollinger Bands are currently moving sideways and so is the Bollinger Bands moving average. This suggests that the trend is sideways between this range and as long as the indices stay in this range, traders must look for short-term trades. Only a drop below 14,000 on the lower side for the Sensex and 4,200 for the Nifty will result in the indices going into a deeper downtrend. On the upper side, the Sensex will have to close past 15,580 and the Nifty past 4,650 for them to exhibit higher levels. The Bollinger Bands suggest that the indices are likely to continue to remain in this sideways trend for a while before they move out of this band. The major trend of the indices is down, as the indices have been exhibiting descending intermediate tops and bottoms.