>EAGLE EYE ON 29/09/09

Week ends negative

Markets on Sep 25, 2009: Volatility continues
Nifty opened negative after its sharp recovery from its yesterday’s low and continued its zigzag movement throughout the day in 4930-5000 range. Today also, Nifty failed to close above 5000-mark but it held on to its crucial support of 4900. Nifty continues to trade in an upward
parallel channel-- the upper end of the channel is at 5100 and the lower end at 4900. So, going forward its crucial for Nifty to close above 5000 level to gain further momentum on upside.

On daily chart, Nifty is trading above its 20 daily moving average (DMA) and 40DMA i.e. 4823 and 4691 respectively, which are crucial supports going forward. The momentum indicator (KST) has given negative crossover and is above zero line. Market breadth was positive with 761 advances and 505 declines on NSE and 1,676 advances and 1,188 declines on BSE.

On hourly chart, Nifty is trading below its 20HMA and 40HMA i.e. 4983 and 4971 respectively, which are now resistances in short term. The momentum indicator (KST) has given a positive crossover but is trading below zero line.

Nifty and Sensex closed in red, lower 28 and 88 points respectively. Of the 30 Sensex stocks, Dr Reddy’s Laboratories (up 10.50 %) and Ranbaxy Laboratories (up 4.08%) were the top gainers, whereas Tata Steel (down 2.85%) and ICICI Bank (down 2.50%) were the top losers.

To see full report: EAGLE EYE 290909