Morning Murmur - May 30 2007

Yesterday, Nifty opened positive but it was unable to sustain and fell sharply. It took support at 4248, after that it started recovering gradually and broke the Monday’s high of 4295, it made a new high of 4298 and finally gave a all time high closing at 4293 with a gain of 0.86%. The BSE CG, BSE CD, BSE HC and BSE Oil&Gas indices outperformed the markets, However, the BSE FMCG and BSE IT index closed with marginal losses. The Advance Decline ratio was in the favour of bulls at 5:4 yesterday.

Yesterday, after taking support at 4248, Nifty started recovering, it was continuously making higher tops and higher bottoms and in last hour of trade it cleared its resistance range of 4290- 4295 with good volumes and made a high of 4298. It finally gave a all time high closing at 4293 with a gain of 0.86%. We maintain bullish view on Nifty for short term as well as for long term. Today, Nifty can test our immediate target of 4336. However, we maintain short-term target of 4454 for Nifty. For intra-day Nifty has support at 4264 and below that 4242.

The BSE CG index outperformed the broader markets yesterday. It closed strong at 10896 with a gain of 2.81% & is still looking very strong on the charts. We maintain bullish view for this index with the target of 11128 and long-term target of
12107. Stocks like BHEL, LT , Siemens, ABB, Crompton greaves and Punj Lloyd are still showing strength on the charts.

Yesterday, The BSE HC index has broken five-month-old trendline with very good volumes and closed at 3857 with a gain of 1.70%. Now it can come up to 3991 and if it sustains above 3995 then it can test 4111 in the coming days. However, the
level of 3881 will play as a resistance for this index. Stocks like Cipla, Sun Pharma, Sterling Bio and Orchid Chem are looking strong on the charts.