Punter's Call 28-Aug-2009 Above 4700 After struggling for days, on the very first day of the September series, the stock market closed at all-time high for the year.

Punters' Call After struggling for days, on the very first day of the September series, the stock market closed at all-time high for the year. Further, the weekly positive close after the previous bullish hammer indicates that bulls continue their grip on the market. In the first half of today’s session the market traded within a range, however in the second half it broke out above 4700 level, which had acted as strong resistance two times earlier. The icing on the cake was that the breakout was supported with good volumes. After two days of flat closing, Nifty managed to close higher and above the close of the outside bar, which suggest more strength in days to come. This will open the gates for our short-term target. On the Sensex, the daily chart ‘bullish island’ had been formed with support at the lower band ie 15275, a bullish sign for the market. Nifty is currently trading above 20 daily moving average (DMA) and 40DMA ie 4561 and 4479 respectively, which are crucial support levels going forward. The momentum indicator (KST) has given positive crossover and trading above the zero line. On the hourly chart, Nifty is trading above 20 hourly moving average (HMA) and 40HMA ie 4667 and 4576 respectively, which are strong support levels in the immediate run. Our short-term bias is up with reversal at 4350 and target at 4780. The market breadth was positive with 675 advances and 584 declines on the NSE and 1,534 advances and 584 declines on the BSE. For the day, Nifty and BSE ended 44 points and 141 points higher respectively. Of the 30 stocks that constitute the Sensex, DLF (up 5%) and Bharti Airtel (up 4%) were the top gainers, while Tata Power (down 1.5%) and Ranbaxy Laboratories (down 1.5%) were the top losers. Metal and Infrastructure scrips saw buying interest today. Looking Trendy Sensex 30 Nifty Support Resistance Support Resistance 15660 16200 4670 4755 15400 16350 4620 4780 15275 16555 4580 4820 20DSMA 40DEMA 20DSMA 40DEMA 15400 15080 4566 4481 BSE Sensex: 15,922 Nifty: 4,732 Market breadth BSE NSE Advances 1,534 675 Declines 1,249 584 Unchanged 72 35 Volume (Rs) 6,534cr 18,329cr Short term Trend Time Target Trend Reversal Support/ Resistance Short term (Sensex) 16200 Down below 14650 14650 / 16200 Short term (Nifty) 4780 Down below 4350 4350 / 4780 Icon guide Up Down Downswing matures Upswing matures