Markets on August 13, 2009: Sharp pull-up (Retracing the fall)

Today’s session reflected the return of brave bulls, as it was a non-stop rally till the end. Though the real picture is bit different, as...

Today’s session reflected the return of brave bulls, as it was a non-stop rally till the end. Though the real picture is bit different, as today’s gush was just a pull-up and not a new run. Currently Nifty has retraced 61.8% of the entire fall from 4731 up to 4359, which indicates that market is at a crucial juncture, and as per the retracement theory the downtrend should resume. The daily KST continues to maintain its downward bias. The market breadth was positive with 1122 advances and 143 declines.

Our short-term bias is down for the target of 4325 with the reversal packed at 4732. However our mid-term bias is still up for the target of 5000 with the reversal packed at 4325.

The Sensex ended 498 points higher, while Nifty closed 147 points up. However, BSE MIDCAP and BSE SMLCAP closed 3.5% and 4.1% higher respectively. Board-based buying was reflected across the board with stocks from realty, metal and auto sectors leading the game. From the 30 stocks of the Sensex DLF (up 7%), ICICI Bank (up 7%), Maruti Suzuki India (up 6%) and Tata Steel (up 6%) led the pack of gainers.