After witnessing a rise in early hours, the stock market fell into the red on persistent profit booking all through the day. This week’s feeble closing sounds a ring of caution, as after thirteen consecutive positive weeks, we have a negative close. It seems that bull’s momentum has been arrested and the rally has come to a stand still.So from here a correction cannot be ruled out. The Sensex ended the day 173 points lower, while Nifty closed 54 points down. Stocks from the mid-cap and small-cap spaces also moved downhill as the BSE MIDCAP and BSE SMLCAP were down by 2.10% and 2.21% respectively. On the daily chart,Nifty is forming a rising wedge with negative divergence in the momentum oscillator KST, which indicates there is high probability of wedge breaking in favour of bears. On the hourly chart, Nifty is still traveling aligned to the upper boundary of the channel, but on the other hand moving average support has been violated. Bears totally dominated the market breadth with 1,041 declines and 214 advances on the NSE.

The hourly KST is in sell mode. Our short-term bias is down for the target of 4200 with the reversal pegged at 4700, while our mid-term bias is still up for the target of 4850 with reversal placed at 3861.

Consumer goods, realty and auto sector scrips tanked the most, while buying was seen in metal and oil & gas stocks.From the 30 stocks of the Sensex, Reliance Industries (up 2%) and Sterlite Industries (up 2%) led the pack of gainers,while Ranbaxy Laboratories (down 6%), DLF (down 6%)and Reliance Communications (down 4%) 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.