dkishore
19-11-2007, 07:08 AM
If the 5650 support breaks, the market could slide to 5525 before hitting the next serious support.
This week, the FIIs and Mutual funds were net buyers to a significant extent. However breadth signals were not very good. Volumes were low through the week and by the weekend, the advances to declines ratio wasn’t that healthy.
The BSE 500 was ahead 4.88 per cent however. The underperformances came in the IT sector (the CNX IT was down 0.9 per cent) and in smaller scrips.
Outlook: There’s apparent resistance close to the all-time highs above 5950, in fact. There’s strong support all the way down to the 5500 level. There’s a fair chance that the market will oscillate between this range next week.
Rationale: While the market rebounded off support at 5525 early this week, it is not generating enough volume to make new highs.
There are support levels closer to the current price but the Nifty is also swinging through 200 points per session. It’s safer to assume that it will hit the 5500 support.
Counter-view: The FIIs and mutual funds appear to have both turned positive. Usually that’s sufficient to force the market up. If the change in attitude is backed by more volumes, it would almost certainly mean new highs.
Bulls & bears: Refinery stocks saw a big surge through the week. Essar Oil and HPCL seemed to be especially favoured.
Among other scrips, bulls will have to be very selective. While several stocks have excellent price patterns, in most cases the volume is low, which makes the chart projections suspect. Investment through the week was broad-based but on Friday, very few scrips maintained bullish perspective.
Banking scrips did well until the last session. Even then, a couple of counters such as Corporation Bank and ICICI could hold to the value, There could be a bounce in the IT scrips next week since several including Infosys have seen sharp selloffs.
Otherwise there were scattered winners such as Dr Reddys, ITC, Grasim, Suzlon Energy, Nagarjuna Fertiliser. While the Reliance and ADA group counters continued to register powerful volumes, only Reliance Capital looks ripe for a sustained gain.
This week, the FIIs and Mutual funds were net buyers to a significant extent. However breadth signals were not very good. Volumes were low through the week and by the weekend, the advances to declines ratio wasn’t that healthy.
The BSE 500 was ahead 4.88 per cent however. The underperformances came in the IT sector (the CNX IT was down 0.9 per cent) and in smaller scrips.
Outlook: There’s apparent resistance close to the all-time highs above 5950, in fact. There’s strong support all the way down to the 5500 level. There’s a fair chance that the market will oscillate between this range next week.
Rationale: While the market rebounded off support at 5525 early this week, it is not generating enough volume to make new highs.
There are support levels closer to the current price but the Nifty is also swinging through 200 points per session. It’s safer to assume that it will hit the 5500 support.
Counter-view: The FIIs and mutual funds appear to have both turned positive. Usually that’s sufficient to force the market up. If the change in attitude is backed by more volumes, it would almost certainly mean new highs.
Bulls & bears: Refinery stocks saw a big surge through the week. Essar Oil and HPCL seemed to be especially favoured.
Among other scrips, bulls will have to be very selective. While several stocks have excellent price patterns, in most cases the volume is low, which makes the chart projections suspect. Investment through the week was broad-based but on Friday, very few scrips maintained bullish perspective.
Banking scrips did well until the last session. Even then, a couple of counters such as Corporation Bank and ICICI could hold to the value, There could be a bounce in the IT scrips next week since several including Infosys have seen sharp selloffs.
Otherwise there were scattered winners such as Dr Reddys, ITC, Grasim, Suzlon Energy, Nagarjuna Fertiliser. While the Reliance and ADA group counters continued to register powerful volumes, only Reliance Capital looks ripe for a sustained gain.