§ The Indian bourses broke down from a narrow range and slipped lower following weakness in global markets. Sectorially, profit booking intensified in FMCG, Oil & Gas and IT space.
§ The Sensex closed at 20104, down 12 points and the Nifty closed at 6029, down 6 points.
§ Gainers were NTPC (1.70%), Mahindra & Mahindra (1.43%), Reliance Communications (1.33%), DLF (0.88%), Jindal Steel & Power (0.84%), and Reliance Energy (0.81%).
§ Losers were Housing Development Finance Corporation (2.51%), Hindalco Industries (2.00%), Reliance Industries (1.44%), Sterlite Industries (India) (1.10%), Tata Consultancy Services (1.02%), and ICICI Bank (0.98%).
§ The Oil & Gas index was down 0.97%. Major losers were GAIL (India) (1.42%), Bharat Petroleum Corporation (1.31%), Cairn India (0.49%), Essar Oil (0.37%), and Aban Offshore (0.1%).
§ The FMCG index was down by 0.71%. Major losers were Godrej Consumer Products (2.39%), Colgate-Palmolive (India) (1.72%), Dabur India (1.38%), Hindustan Unilever (0.97%) and ITC (0.93%).
§ The IT index was down 0.53%. Major losers were Mphasis (1.51%), HCL Technologies (1.04%), Patni Computer Systems (0.55%), Infosys Technologies (0.41%), and Oracle Financial Services Software (0.21%).
§ The Power index was up 0.70%. Major gainers were ABB (2.25%), NTPC (1.7%), Reliance Infrastructure (0.81%), Lanco Infratech (0.8%), and Bharat Heavy Electricals (0.4%).
§ Globally, Asian indices ended mixed, while European indices were trading flat.
§ The market opened on a flat note, made and intraday high of 6050 and then slipped on profit taking. Nifty found support near the 50 hourly SMA (5985), which also coincided with our bearish pivot at 5980, and moved higher in the last hour to close with marginal loss. The hourly momentum oscillator MACD has seems to have completed its corrective cycle and is turning up from the zero line. Short-term daily momentum oscillators have triggered a buy signal once again. Market breadth was in favor of declines due to the day’s negative bias. Nifty stocks' breadth ended neutral at 1:1. Nifty has held above the short-term bearish pivot of 5980, despite breaking the trend channel at 6000, suggesting the next leg of the up move may have begun. This will be confirmed once Nifty manages to cross above the ‘shooting star’ candlestick pattern high of 6074. It is advisable to remain on the long side with trailing stops below 5950 and a target of 6115 in the short-term.
§ Power sector continued to trade positively through the day, followed by gains in Cap Goods and Realty stocks. Banking stocks rallied in the final hour to properly the Nifty above 6000. Oil & Gas, IT and Telecom continue to witness short-term profit taking correction. Sugar stocks continue to look attractive from current levels for 4-5% headroom. Bullish Setups: DLFU, NTPC, BRCM, MM, KMB. Bearish Setups:
§ European markets have recovered from earlier losses and closed flat. The FTSE has taken support at the 21 daily EMA and has made a long lower shadow candlestick indicating bullishness. These indices are expected to close the month and quarter on a positive note setting the platform for a bullish trend in the last quarter. Gold has broken past the $1300 barrier making a bullish outside day. This implies the rally to continue towards the $1340 target zone. Crude Oil is displaying bullish momentum trigger that is likely to propel it to the short-term channel resistance at $80.
§ Interesting chart setups: DLF, NTPC, TATA
No comments:
Post a Comment