Support held

Markets on June 4, 2009: Buck the weak trend

After languishing in the red during the first half, the Indian markets shed their losses as
buying activity picked up during the second half of today’s trading session. In fact the
markets ended the day on a strong note with the Sensex ending higher by 137 points,
while the Nifty closed higher by 41 points. Stocks from the mid-cap and small-cap spaces
ended the day on a firm note as well, recording gains of 2.26% and 2.2% respectively. On
hourly chart after taking the support at 20-hourly simple moving average, Nifty is just
standing at the upper resistance line of the consolidation pattern. Further hourly
momentum oscillator suggest that the consolidation pattern will see an upside breakout.
Market breadth is positive with 917 advances and 355 declines.

Hourly momentum indicator KST has given a positive crossover. Our short-and mid-term
biases are revised up for the targets of 4700 and 4850 with reversal packed at 4134 and
3861 respectively.

While stocks from the capital goods, realty and healthcare sectors led the pack of gainers,
stocks from the metal and software space ended the day on a weak note. From the 30
stocks of Sensex Ranbaxy (up 6%), Sun Pharmaceuticals (up 4%) and Hindustan
Unilever (up 4%) led the pack of gainers, while Sterlite (down 6%), Hindalco (down 4%)
and Tata Steel (down 4%) led the pack of losers.