Markets on August 04, 2009: Last hour surge

After a lacklustre morning session, the Indian stock market took a small beating in the afternoon. Taking into account the last half-an-ho...

After a lacklustre morning session, the Indian stock market took a small beating in the afternoon. Taking into account the last half-an-hour surge, today’s red close is just a pause in the ongoing rally and in the coming session the rally will resume the uptrend. Further, today, Nifty did respect the support of 20-hourly simple moving average,which is a healthy sign for the market. The resistance that Nifty needs to clear in the coming session is in the zone of 4700-4724. The daily KST is still in the buy mode.The market breadth was almost neutral with 641 advances and 609 declines.

Our short-and mid-term bias is up for the target of 4850 and 5000 with the short- and mid-term reversal pegged at 4420 and 4200 respectively.

The Sensex and Nifty closed on a negative note recording losses of 93 points and 30 points respectively. From the 13 sectors of the BSE, auto and consumer durable sectors ended on a positive note while technology and health care sectors saw profit taking. From the 30 stocks of the Sensex, Hindalco Industries (up 4%), Hindustan Unilever (up 3%) and Tata Motors (up 3%) led the pack of gainers,while Tata Power (down 4%), ONGC (down 3%) and Reliance Infrastructure (down 3%) led the pack of losers.