Update: Outlook on Market next week

The Indian markets were gripped with a terrific mini bull run since the last two weeks. Major resistances werebroken and the markets continued straight 8 winning sessions. 

On friday, the sensex was almost flat with minor losses.

The outlook for the next week is mixed. With the RSI indicator showing overbought conditions, the sensex may return back to test the 19000 levels (200 DMA) on the downside. This can imply that the 18800 - 19350 channel would be open. So this week should see some consolidation among profit bookings.

The upside should remain capped upto 19800-19850 where major resistances lie. Note that if the sensex breaks 19850, it would be entering into a bullish phase and can see some short covering too. 

Stoplosses should be kept trailing at all positions open. Among individual stocks, M&M, REC, United Phos, ITC, etc have made breakouts.
More on stocks next week.