>EAGLE EYE ON 01/10/09 (SHAREKHAN)

Sensex above 17K

Markets on Sep 30, 2009: Strong up-move

Nifty continued to move upwards giving close above 5050, which is a good sign for the market going ahead. Today, it gave a breakout from sideways consolidation pattern and is trading in an upward parallel channel; the upperend of the channel is at 5150. It is holding the lower end
of the channel at 4900, which acted as a crucial support twice earlier. It also managed to surpass the swing high of weekly negative close quite comfortably, which added more strength to its up-move.

On daily chart, Nifty is trading above its 20 daily moving average (DMA) and 40DMA at 4858 and 4709 respectively, which are crucial supports going forward. Momentum indicator (KST) has given negative crossover and is above the zero line. Market breadth was positive with 740
advances and 534 declines on NSE and 1,615 advances and 1,252 declines on BSE.

On hourly chart, Nifty is trading below its 20 hourly moving average (HMA) and 40HMA at 5008 and 4995 respectively, which are now resistances in the short run. Momentum indicator (KST) has given positive crossover but trading below the zero line.

Nifty and Sensex closed in green, gaining 77 and 274 points respectively. Of the 30 Sensex stocks, State Bank of India (up 5.01%) and ICICI Bank (up 4.63%) were the top gainers, whereas ONGC (down 1.25%) and ITC (down 1.07%) were the top losers.

To see full report: EAGLE EYE 01/10/09