MARKET MOVES :
We had a very strong move for the Nifty on Tuesday, as the markets gained 242 points in a day. Hence, for the rest of this week, we made very strong moves for our markets including the robust move on Wednesday. The markets, thus closed at 5428 levels, (4.67%) above its previous week''s close. Hence, we have now consecutively closed positive for the past eight weeks.The market breadth was also positive throughout the week. We had the BSE CAPITAL GOODS, BSE METAL & BSE OIL & GAS Indices making strong moves for the last week.
MARKETS AHEAD :
We had a ''
Bearish Engulfing'' pattern for the Nifty on Friday, which is a bearish reversal pattern indicating that the markets has currently topped out for the short term. We got a confirmation for this pattern as it has ocurred at a clearly definable market uptrend. The volumes clocked for last week was also substantially higher than the previous week, indicating a blow off at higher levels. Therefore, we expect the markets to correct to 5260 levels in the short term. SECTORAL INDICES:
BSE METAL (14841)
The BSE METAL index has broken above the resistance at 14500 on the daily charts with very strong volumes and has closed positive for the past eight weeks. This index was also helped by the current uptrend in the broader markets. We can now expect this index to consolidate in the 14500-14600 levels in the short term, as we have moved very sharply on the upside for the past few weeks.
BSE CAPITAL GOODS (16614)
The BSE CAPITAL GOODS Sector has closed at 16614 levels last week, which is (5.54%) above its previous week''s close. This sector had broken above its resistance at 14000 levels three weeks back. We can now expect this sector to consolidate in the 16000-16100 levels in the short term.
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