MARKET MOVES :
We had a very bearish move for the Nifty on Monday, as the markets lost 270 points in a day. Hence, for this truncated week, we made some flat moves for our markets, for the latter part of the week. The markets, thus closed at 5766 levels, (-4.65 %) below its previous week''s close. Hence, we have now closed negative for this week after closing positive for the previous three weeks. The market breadth was also negative throughout the week. We had the BSE METAL, BSE REALTY & BSE CAPITAL GOODS Indices making downward moves for the last week.
MARKETS AHEAD :
We can observe for the Nifty on the daily charts, that the markets has a strong support at 5700 levels. We can also notice that the markets have consolidated at the 5700 levels very nicely since the past few trading sessions. Also, the markets have gone down this week with low volumes, which indicates that the markets are likely to consolidate for some more time in the short term. Therefore, we can expect our markets to trade in a sideways range between 5700-5900 levels in the short term.
SECTORAL INDICES:
BSE METAL (18273)
The BSE METAL Sector has closed at 18273 levels this week, which is (-7.54%) below its previous week''s close. We can also notice on the daily charts that we have a strong support at 18000 levels, which is unlikely to be tested in the short term. Hence, we expect this sector to move in a sideways range between 18100-18300 levels in the short term. We recommend a buy in Jindal Steel & Power and JSW Steel in this sector.
BSE REALTY (11614)
The BSE REALTY index has closed at 11614 levels this week, which is (-6.34%) below its previous weeks close. We can also notice on the daily charts that we have a strong support at 11400 levels, which should hold in the short term. Hence, we can now expect this index to move in a sideways range between 11500-11700 levels in the short term. We recommend a buy in Omaxe and HDIL in this sector
BSE CAPITAL GOODS (18725)
The BSE CAPITAL GOODS index has closed at 18725 levels this week, which is (-5.72%) below its previous weeks close. We can also notice on the daily charts that we have a strong support at 18700 levels, which seems likely to be tested in the short term. Hence, we can now expect this index to move lower to 18000 levels in the short term. We recommend a sell in Areva T & D and Crompton Greaves in this sector
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