Markets on June 4, 2009: Buck the weak trend

After languishing in the first half, the markets shed their losses, as buying picked up during the second half. The markets ended the day ...

After languishing in the first half, the markets shed their losses, as buying picked up during the second half. The markets ended the day on a strong note with the Sensex ending 137 points up, while Nifty closing 41 points higher.Mid caps and small caps also did well with the BSE MIDCAP and BSE SMLCAP up 2.26% and 2.2% respectively. On hourly chart, after taking the support at 20-hourly simple moving average, Nifty is just standing at the upper resistance line of the consolidation pattern. Further, the hourly momentum oscillator suggests that the consolidation pattern will see an upside breakout. The market breadth was positive with 917 advances and 355 declines on the NSE.

Hourly momentum indicator KST has given a positive crossover. Our short-and mid-term biases are revised up for the targets of 4700 and 4850 with the short- and midterm reversal pegged at 4134 and 3861 respectively.

Capital goods, realty and healthcare scrips led the pack of gainers, whereas metal and information technology stocks ended the day on a weak note. From the 30 stocks of the Sensex, Ranbaxy Laboratories (up 6%), Sun Pharmaceutical Industries (up 4%) and Hindustan Unilever (up 4%) led the clutch of gainers, while Sterlite Industries (down 6%), Hindalco Industries (down 4%) and Tata Steel (down 4%) led the drove of losers.