The markets witnessed a corrective week last week. This time it was lead by Infosys numbers which made the markets rejoice and investors started booking profits, with the Sensex and the Nifty correcting by more than 2 per cent each.

A question can come up to anybody who is reading this—markets are correcting and we mention it as rejoicing. How is this possible? The stock markets always discount things before they actually happen and prices move before things are out and when they do come out, the prices witness profit booking.

In the second quarter which ended on 30 September 2009, the Sensex has witnessed a gain of more than 2100 points and Nifty of more than 600 points. So a correction round for the markets would surely mean that investors are rejoicing by taking their share of profits home.

For the coming week Sensex has a resistance at 17062 – 17195 levels and Nifty at 5077 – 5110. These levels come in from the highs made by the indices recently. On the lower side, support exist at 16494 – 15673 for the Sensex and 4786 – 4725 for the Nifty. These levels have the strength of help the indices bounce back.