Last weak BSE Sensex surged 223.02 points, or 1.24%, to 18,221.43 for the week. Nifty gained 70.7 points, or 1.31%, to 5,479.4. The BSE Mid-Cap index jumped 2.94% to 7,859.11 and the BSE Small-Cap index 2.82% to 9,912.64 in the week. Both these indices underperformed the Sensex.
Strong Q1 June 2010 GDP data and robust automobile sales for August 2010 helped the market gain upward momentum last week.
FOR THIS WEEK:
Last week Indian markets had raced northwards and beaten the expectation of minor corrections on a closing basis. 5350 had proven its importance as the support zone.Nifty in between the week’s trade had reached 5350 and retraced from there hence 5350 established as strong demand zone. Nifty bulls would be little cautious about the further upside as 5550 which is the upper band of the channel inside which index is trading for past 9 months is not been broken even during the last attempt and significant sell off was witnessed from there. This indicates 5550 acting not only as a technical resistance but also as the psychological hurdle.
On the last two days, index had formed an inverted hammer candlestick pattern for past two days which is a bearish sign. So till their highs are not beaten soon Nifty may slide downside.
Nifty on the recent up move had taken resistance at 78.6% retracement level of the fall from 5549 to 5350 at around 5513 hence a breaking of those levels can carry index towards 5549.
Data on Industrial Production for July 2010 will be out on Friday, 10 September 2010.
FOR TODAY:
Sugar stocks will be in focus as some reports suggested that Agriculture Minister Sharad Pawar had made a formal presentation to the Prime Minister on decontrol of the sugar sector.
US market will remain closed on Monday on account of Labour Day.
All Asian Markets are trading in GREEN and SGX Nifty is trading around 5505.50, up 24.50 suggests that NIfty may open around 5502-5508 will struggle to cross 5515. Above 5515, it may touch 5540. On the downside, it breaches 5467, it may touch 5450 and 5420. The possible range for today maybe between 5450 to 5540.
DISCLAIMER: I have no holding.
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