pushkan
3rd June 2009, 10:50 AM
Key benchmark indices saw a flattish but divergent trend with the BSE Sensex logging small gains while Nifty ending slightly lower in what was a highly choppy trading day. The stocks staged a comeback in late trade after an early slump caused by profit booking, weak European markets and on Asian markets turning negative after early gains.
Index heavyweights Reliance Industries and ICICI Bank played a lead role in the recovery in the key benchmark indices from lower level. The Nifty-50 closed at 4525.25, down just 0.10% or 4.65 points, after showing recovery of 74 points from the day's low of 4451.30. It closed above the 4500 mark for the second consecutive day.
Volumes were on the higher side compared to previous session. Total traded turnover stood at Rs 98,750.05 as against Rs 91,474.41 crore on Monday. It comprised of Rs 25,683.95 crore from the NSE cash segment, Rs 63,624.63 crore from the NSE F&O and the balance Rs 9,441.47 crore from the BSE cash segment.
The market breadth ended in favour of advances; about 1718 shares advanced while 1165 shares declined on the BSE. Nearly 253 shares remained unchanged.
Chart 1 : Nifty – Hourly – Support @ 4350-4465 Resistance @ 4565-4624
31
The 4450 level is crucial for the short term mood of the market. It has been holding fort over the last 2 days. This indicates that bulls are not allowing the squeezed bears any leeway and are bent on getting their targets (Read 4600-4650) done.
The immediate support, as established yesterday, would creep in at 4465 i.e. last two day’s intraday low as well at 4340, which represents the closing of June expiry.
We have an important time-cycle around this week, so CAUTION is the key word. For today a bit of caution is advised in all longs, as we approach an important price target as well as a time-cycle target. As such the levels have to be reviewed dynamically and in a nimble footed way.
For today one can remain long with a stop loss at 4500. The targets to watch for would be 4565-4620.
__________________________________________________ ____________________ _
Financial Services
Head Office A 1/291 Safdarjung Enclave, New Delhi 110029
Telephone 91-11-42022222 (50 lines), 26106371
Fax 91-11-26165176
Web site www.pacefin.com
__________________________________________________ ____________________ _
RESEARCH
Pushkaraj Kanitkar Chief Technical Analyst pushkan@pacefin.in
Head, Research & Strategy
Yadvendra Mohan Database Management yadvendra@pacefin.in
__________________________________________________ ______________________
Disclaimer
The Research Department of PACE Financial Services has prepared this report. The information and opinions contained herein have been compiled or arrived at based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. This document is for information purposes only. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as an offer or solicitation of an offer, to buy or sell any securities or other financial instruments. PACE, its owners, directors, analysts or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on basis of this report, including but not restricted to, fluctuation in the prices of shares and bonds, changes in the currency rates, diminution in the NAVs, reduction in the dividend or income, etc. Investors should invest only in consultation with their financial adviser.
PACE and other group companies, its owners, directors, analysts, associates, employees may have various positions in any of the stocks, securities and financial instruments dealt in the report, or may make sell or purchase or other deals in these securities from time to time or may deal in other securities of the companies /organizations described in this report.
General Advice Warning
Please note that any advice given by PACE is deemed to be general advise, as the information or advice given, does not take into account your particular objectives, financial situation or news. Therefore, at all times you should consider the appropriateness of the advice and consult your financial advisor before you act further.
Index heavyweights Reliance Industries and ICICI Bank played a lead role in the recovery in the key benchmark indices from lower level. The Nifty-50 closed at 4525.25, down just 0.10% or 4.65 points, after showing recovery of 74 points from the day's low of 4451.30. It closed above the 4500 mark for the second consecutive day.
Volumes were on the higher side compared to previous session. Total traded turnover stood at Rs 98,750.05 as against Rs 91,474.41 crore on Monday. It comprised of Rs 25,683.95 crore from the NSE cash segment, Rs 63,624.63 crore from the NSE F&O and the balance Rs 9,441.47 crore from the BSE cash segment.
The market breadth ended in favour of advances; about 1718 shares advanced while 1165 shares declined on the BSE. Nearly 253 shares remained unchanged.
Chart 1 : Nifty – Hourly – Support @ 4350-4465 Resistance @ 4565-4624
31
The 4450 level is crucial for the short term mood of the market. It has been holding fort over the last 2 days. This indicates that bulls are not allowing the squeezed bears any leeway and are bent on getting their targets (Read 4600-4650) done.
The immediate support, as established yesterday, would creep in at 4465 i.e. last two day’s intraday low as well at 4340, which represents the closing of June expiry.
We have an important time-cycle around this week, so CAUTION is the key word. For today a bit of caution is advised in all longs, as we approach an important price target as well as a time-cycle target. As such the levels have to be reviewed dynamically and in a nimble footed way.
For today one can remain long with a stop loss at 4500. The targets to watch for would be 4565-4620.
__________________________________________________ ____________________ _
Financial Services
Head Office A 1/291 Safdarjung Enclave, New Delhi 110029
Telephone 91-11-42022222 (50 lines), 26106371
Fax 91-11-26165176
Web site www.pacefin.com
__________________________________________________ ____________________ _
RESEARCH
Pushkaraj Kanitkar Chief Technical Analyst pushkan@pacefin.in
Head, Research & Strategy
Yadvendra Mohan Database Management yadvendra@pacefin.in
__________________________________________________ ______________________
Disclaimer
The Research Department of PACE Financial Services has prepared this report. The information and opinions contained herein have been compiled or arrived at based upon information obtained in good faith from sources believed to be reliable. Such information has not been independently verified and no guaranty, representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. This document is for information purposes only. Descriptions of any company or companies or their securities mentioned herein are not intended to be complete and this document is not, and should not be construed as an offer or solicitation of an offer, to buy or sell any securities or other financial instruments. PACE, its owners, directors, analysts or employees do not take any responsibility, financial or otherwise, of the losses or the damages sustained due to the investments made or any action taken on basis of this report, including but not restricted to, fluctuation in the prices of shares and bonds, changes in the currency rates, diminution in the NAVs, reduction in the dividend or income, etc. Investors should invest only in consultation with their financial adviser.
PACE and other group companies, its owners, directors, analysts, associates, employees may have various positions in any of the stocks, securities and financial instruments dealt in the report, or may make sell or purchase or other deals in these securities from time to time or may deal in other securities of the companies /organizations described in this report.
General Advice Warning
Please note that any advice given by PACE is deemed to be general advise, as the information or advice given, does not take into account your particular objectives, financial situation or news. Therefore, at all times you should consider the appropriateness of the advice and consult your financial advisor before you act further.