The Indian stock market continued its upward movement on the back of sustained buying activity during the final hour of the trade. In spite of opening deep in the red, the indices managed to end on a strong note and also managed to fill the opening bearish gap. In fact, Sensex witnessed an intra-day movement of almost 600 points from the low of the day and Nifty witnessed an intra-day movement of almost 200 points. Sensex closed with gains of 207 points, while Nifty closed higher by 86 points. Stocks from mid-cap and small-cap space ended the day on a strong note as well. On the daily chart, Nifty is approaching the upper boundary of the channel and yet there are no signs of reversal. Further, the daily moving average crossover of 20-daily simple moving average (DSMA) and 40-daily exponential moving average (DEMA) has taken place, which will surely favour the bulls. On the hourly chart,Nifty is about to kiss the upper boundary of the widening pattern. The 20-hourly simple moving average (HSMA) is a good demand area, which should not be broken for the bulls to dominate. The daily momentum oscillator KST is positive. Bulls dominated the market breadth with 1,050 advances and 184 declines.

The hourly KST has given a positive crossover. Our shortand mid-term biases are up for the target of 3450 for both with the short- and mid-term reversal pegged at 3100 and 2960 respectively.

Buying activity was witnessed in stocks across sectors led by realty, fast moving consumer goods and capital goods. However, stocks from banking and metal space remained less favoured. From the 30 stocks of Sensex,Jaiprakash Associates (up 9%), National Thermal Power Corporation (up 7%) and Tata Motors (up 6%) led the pack of gainers. However, Mahindra & Mahindra (down 4%) and Hindalco Industries (down 3%) led the pack of losers.

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

Author Name

Contact Form

Name

Email *

Message *

All Rights Reserved © 2008 Shubhlaxmi Investment. Powered by Blogger.