MARKET MOVES :
We had a very strong move for the Nifty on Monday, as the markets gained 203 points in a day. Hence, for the rest of this week, we made very strong moves for our markets including the strong move on Friday. The markets, thus closed at 5932 levels, (+4.05 %) above its previous week''s close. Hence, we have now closed positive for the second consecutive week .But, the market breadth was flat throughout the week. We had the BSE CAPITAL GOODS, BSE BANKEX & BSE PSU Indices making strong moves for the last week.
MARKETS AHEAD :
We can observe for the Nifty on the daily charts, that the markets have been consolidating in the 5850-5950 range for the past few days. We, can also notice on the daily charts, that the markets have taken a strong support at 5850 levels, which is forming a new short term support for the markets. The volumes clocked for this week was also above average than most of the previous weeks, indicating that the markets are moving up with strong volumes. Therefore, we can expect this consolidation between 5850-5950 to end soon and the markets to resume their uptrend again. Hence, we expect the markets to move towards 6200 levels in the short term.
SECTORAL INDICES:
BSE CAPITAL GOODS (20386)
The BSE CAPITAL GOODS index has closed at 20386 levels this week, which is a strong 9.96% move above its previous weeks close. We can also notice on the daily charts that we have formed a strong support at 19750 levels, which is unlikely to be tested in the short term. We can now expect this index to move towards 21000 levels in the short term. We like Punj Lloyd and Larsen & Toubro in this sector.
BSE BANKEX (11241)
The BSE BANKEX Sector has closed at 11241 levels this week, which is (9.42 %) above its previous week''s close. This sector had consolidated very nicely between 10500 to 10800 levels in the last week and has now broken above this consolidation range. We, expect this sector to move higher, to 11600 levels in the short term. We like ICICI Bank and Axis Bank in this sector.
BSE PSU (9930)
The BSE PSU Sector has closed at 9930 levels this week, which is (7.62 %) above its previous week''s close. This sector has also breached the upside resistance at 9300 levels last week with very strong volumes. We, expect this sector to move higher, to 10200 levels in the short term. We like Engineers(I) and Dredging Corp. in this sector.
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