After a good opening, the domestic stock market continued to climb northward in morning session. However,in the later part of the day on account of massive selling pressure the indices gave off the early gains to end the day on almost a flat note. The Sensex ended the day 34 points, while Nifty was 10 points down. Today, Nifty has cleared 3512 levels, as per which the alternate view of extension in the current rally has come into play, the target for which is pegged at 3650. However, the hourly chart portrays a slight negative picture for the reason that Nifty has formed a double top with negative divergence in the momentum oscillator KST. But this negative picture will get consideration only after the breach of the hourly averages and the rising trend line. On the other hand, if the double top gets violated, we will witness a sharp rise.At the time of closing, the overall decline to advance ratio was poised at 1.2 to 1 on the BSE.

On the hourly chart, the momentum oscillator KST has given a negative crossover. Our short-and mid-term biases are revised up for the target of 3650 and 3700 respectively with the short- and mid-term reversals nailed at 3350 and 3290 respectively.

Stocks from mid-cap and small-cap space however ended the day on a negative note, lower by 0.4% and 1% respectively. Barring stocks from banking and capital goods space, selling was witnessed in stocks across all other sectors. Realty and power sector stocks remained the top losers of the day. From the 30 stocks of the Sensex, ICICI Bank (up 8%), Sterlite Industries (up 4%) and Wipro (up 4%) led the pack of gainers. However Ranbaxy Laboratories (down 5%) and Reliance Infrastructure (down 4%) led the pack of losers.

(Disclaimer : The above chart shown is for study purpose only and not for trading decision)

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