A fitting end to a largely range bound week as the index traded within 40 points throughout the day only to close with a marginal loss. The bullish undertone however remains with a weekly positive close; the fifth in a row and even managed to stay afloat of the 5300 technical and psychological barrier. There as some signs of fatigue evident on the hourly charts with negative divergence developing and the short-term momentum getting overbought. Market breadth slipped in favour of declines for the first time in the week indicating widespread profit taking on Friday. Due to the range bound nature of trade, volumes remained relatively lower and volatility remained unchanged. The coming week is start of the result season for 1QFY2013; hence one can expect a pick‐up in volatility from current benign levels. We maintain our bullish stance for a target of 5440 and recommend a trailing reversal point of 52 50 (on closing basis).
Barring the uptick in FMCG (+0.67%) and Banking (+0.18%) indices, all other sectoral indices ended the day lower. Biggest knock was taken by shares from Realty (-1.20%), Metals (-1.09%) and Cap Goods (-1.03%) indices. Even the outperforming broader markets Mid-cap and Small-cap indices saw profit taking ending the day down by -0.56% and -0.21% respectively.
Bullish Setups: GSPL, ICICIBC, PWGR, BHEL, ITC, BHARTI
Bearish Setups: TTMT/A, JETIN
Regards,
Edelweiss Research
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