>HIGH NOON ON 1/06/09 (SHAREKHAN)

GAP FILLED

After a strong gap-up opening today the markets have given up all the gains and filled the bullish gap. The Nifty has taken out a strong resistance of 4510 on the upside, which is a positive sign for the market.

The Nifty had formed an inverted head & shoulder pattern, which has already achieved its aggressive target of 4420. On the daily charts, the Nifty has the 20DMA and the 40DMA
at 3997 and 3748 respectively, which are crucial support levels. The momentum indicator is trading in the positive zone and has given a positive crossover.

The market breadth is positive with 974 advances and 275 declines. On the daily charts, support at 4300 and strong resistance at 4600 are indicated.

On the hourly charts, the momentum indicator has given a positive crossover and is trading in the positive zone.

Of the 30 stocks of the Sensex, Bharti (down 3.5%) and ICICI Bank (down 2%) are the top losers. ICICI Bank is looking negative and is likely to test Rs650 on the downside with strong resistance at Rs750. Of the sectors, the banking sector is looking negative and is expected to move downwards.

To see full report: HIGH NOON