Strong buying led the indices spike during the final hour of trade, as the Sensex ended the day 317 points higher and Nifty closed 93 points up. On the daily chart, Nifty has breached the swing highs of previous two bars, which will surely cheer some bulls. On the hourly chart, Nifty has broken out of the bullish pattern and the hurdle of 20- and 40-hourly averages is also surpassed. But until the high of 3512 is penetrated, overall view still remains bearish. Before 3512, another important hurdle where Nifty may start fading is 3470. The daily KST is still in sell mode. At the time of closing, overall advance to decline ratio was poised at 1.4:1 on the BSE.

On the hourly chart, the momentum oscillator KST has given a positive crossover after a double-bottom, which is a good sign for bulls, but until 3512 is not crossed, bears have equally fair chance of a comeback. Our shortterm bias is down for the target of 3150 with reversal pegged at 3550. However, our mid-term bias is up for the target of 3650 with reversal nailed at 3050.

Stocks from mid-cap and small-cap space also ended the day on a positive note, up 1.48% and 0.94% respectively.Buying activity was witnessed in stocks across sectors led by information technology, metals and realty. From the 30 stocks of the Sensex, Wipro (up 11%), Tata Steel (up 9%) and Grasim Industries (up 7%) led the pack of gainers. However, Sun Pharmaceutical Industries (down 0.5%) and Hindustan Unilever (down 0.3%) led the clutch of losing stocks.

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

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