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India Equity Research Reports, IPO and Stock News
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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� �
After few days of sideways choppy moves, the markets finally gave a smart breakout above the 4900 barrier to rally ~1.92% to close near the high of the day at 4967. Nifty opened with a large gap up and steadily rallied higher closing the minor gap at 4921 and even breaking above the 4950 resistance. It has formed a ‘bullish opening marubozu’ candlestick along with a bullish gap indicating strong bullish underline strength. From hereon the index faces stiff resistances between 4980 and 5000 which is a psychological barrier. Trading volumes increased substantially along with a strong A/D ratio of 2.3:1 indicating an overall buying strength in the market. Momentum oscillators continue to build on the bullish setup as the daily MACD climbs above the zero line and the RSI too enters the bullish territory above 50. The immediate short-term oscillators are trading in overbought territory which could result in profit taking on rallies. We continue to maintain a bullish bias on the Nifty under the current price/momentum setup (ie. Higher highs and lows), however expect profit booking after large rally yesterday as it approached the barrier of 5000. On the downside the index has strong support at 4880 and 4800.
All the sectoal indices ended the day in the green with gains led by Cap Goods (+3.73%), Metals (+3.66%) and Realty (+3.46%). Among the underperformers of the day were Healthcare (+0.64%), FMCG (+0.68%) and IT (+0.97%) indices. It was a day where the broader markets took a back seat as the frontline stocks took center stage. The Mid-cap and Small-cap ended the day with gains of 1.34% and 1.07% respectively.
Bullish Setups: COAL, PIHC, IDEA, DITV, JUBI
Bearish Setups: INFY, IGL, BJAUT
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