MARKET MOVES :
We had a very bullish move for the Nifty on Wednesday, as the markets gained 242 points in a day. Hence, for the rest of this week, we made very strong upmoves for our markets including the robust move on Tuesday. The markets, thus closed at 5907 levels, (4.30%) above its previous week''s close. Hence, we have now closed positive for this week after closing negative for the previous week. The market breadth was also very positive throughout the week. We had the BSE FMCG, BSE BANKEX & BSE PSU Indices making strong upmoves for the last week.
MARKETS AHEAD :
We can observe for the Nifty on the daily charts, that the markets are currently taking support at 5700 levels, which is its 20 Day moving Average. The markets, have also bounced back very sharply from the lows of 5600 levels recently, to the 5950 highs made last week, in the past few trading sessions. The volumes clocked for this week was also significantly higher than the previous week, which indicates that there is some more headroom for our markets on the upside. Therefore, we can expect our markets to trade in a slightly higher range from 5900-6100 levels in the short term.
SECTORAL INDICES:
BSE FMCG (2231)
The BSE FMCG index has closed at 2231 levels this week, which is (11.16%) above its previous weeks close. We can also notice on the daily charts that we had a strong resistance at 2200 levels, which was broken last week with strong volumes. Hence, we can now expect this index to move higher to 2400 levels in the short term. We like Mcdowell and ITC in this sector.
BSE BANKEX (11003)
The BSE BANKEX Sector has closed at 11003 levels this week, which is (7.74 %) above its previous week''s close. This sector is currently poised for a breakout above 11000 levels as it is moving out of a sideways consolidation pattern. Hence, we can now expect this index to move higher to 11500 levels in the short term. We like State Bank of India and Bank Of Baroda in this sector.
BSE PSU (10571)
The BSE PSU Sector has closed at 10571 levels this week, which is (7.42 %) above its previous week''s close. We can also notice on the daily charts that we are moving in an upward rising channel for this Index since the past two months. Hence, the next upward projection for this rising channel indicates, that this sector can move towards 10800 levels in the short term. We like MRPL and Dredging Corporation in this sector.
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