NIFTY ABOVE 4700
After struggling for days, on the very first day of the
September series, the stock market closed at all-time high
for the year. Further, the weekly positive close after the
previous bullish hammer indicates that bulls continue their
grip on the market. In the first half of today’s session the
market traded within a range, however in the second half
it broke out above 4700 level, which had acted as strong
resistance two times earlier. The icing on the cake was
that the breakout was supported with good volumes. After
two days of flat closing, Nifty managed to close higher
and above the close of the outside bar, which suggest
more strength in days to come. This will open the gates
for our short-term target. On the Sensex, the daily chart
‘bullish island’ had been formed with support at the lower
band ie 15275, a bullish sign for the market. Nifty is
currently trading above 20 daily moving average (DMA)
and 40DMA ie 4561 and 4479 respectively, which are crucial
support levels going forward. The momentum indicator
(KST) has given positive crossover and trading above the
zero line.
On the hourly chart, Nifty is trading above 20 hourly moving
average (HMA) and 40HMA ie 4667 and 4576 respectively,
which are strong support levels in the immediate run.
Our short-term bias is up with reversal at 4350 and target
at 4780. The market breadth was positive with 675
advances and 584 declines on the NSE and 1,534 advances
and 584 declines on the BSE.
For the day, Nifty and BSE ended 44 points and 141 points
higher respectively. Of the 30 stocks that constitute the
Sensex, DLF (up 5%) and Bharti Airtel (up 4%) were the
top gainers, while Tata Power (down 1.5%) and Ranbaxy
Laboratories (down 1.5%) were the top losers. Metal and
Infrastructure scrips saw buying interest today.