India Stock Market June Review – Top 5 Winners and Losers

Today was the last trading session for the month. We shall review the monthly performance of the index and index stocks. We shall also discuss the major gainers and losers for the month.

Short term view of the index:

In the last weekly review, I had mentioned:

On 25/06/07, if a red candle and lower close are formed it would confirm that this wave has ended and the another corrective wave c is likely to start. So from short term perspective, Monday’s session appears crucial.

Interestingly, in daily charts, the higher highs and higher lows are still maintained. This means that market is still bullish, though a corrective decline is inevitable. If we consider the fibonacci retracements, the index, though managed to close below 61.8%, has bounced back strongly.

However, on 25.06.07 we did not get the confirmation that we anticipated. A green candle was formed and the index also gained 7 points. This way, the dark cloud cover pattern was negated by the market.

The waves a and b appear to be over as we can see consolidation through wave c. Today the index has gained 36 points. So, the short term trend has turned bullish. The next resistance will be at 4363 which was the high on 04.06.07.

We discussed about Fibonacci retracements last week. Watch the retracements in the chart below.

The index managed to retrace 61.8% of the fall from 4363 to 4101. It closed above it on last Thursday. However, immediately bears pushed nifty below 61.8% retracement the very next day. Now for the last 4 consecutive trading sessions it has closed above this retracement. This is one more reason to believe that the bulls are back in the market.

Medium term view:

On the weekly charts, the nifty, after forming a triangle breakout during the first week of this month but fell below the previous resistance line the very next week; it still remained below it for another week. In the last two weeks it has once again bounced back and closed above it. Yet another indication of bulls controlling the index. We discussed in earlier weekly review about this triangle breakout, with a triangle height of 690 points. This means that the index is very bullish for the medium term.

Long term view:

As I have maintained here and here, the long term trend is still bullish. There is no reversal sign in the monthly chart. The index has formed higher highs and higher lows for the last 4 months continuously. The relatively long lower shadow indicates that the lower side volatility was high; but bulls have managed to close the index in green. So we still maintain our view of bullishness in the long term charts too.

The top 5 gainers and losers of the month among index stocks are given below:

Scrip	% Gain	Scrip	Loss
ABB	18.84	TATAMOTORS	(11.31)
SUZLON	16.00	MARUTI	(8.93)
TATAPOWER	14.49	SUNPHARMA	(8.38)
REL	14.01	RANBAXY	(8.31)
HINDALC0	13.90	HINDPETRO	(8.16)

The following table shows the five top gainers and losers in overall market. As I have mentioned in earlierarticles, these belong to either A or B1 category of BSE and also traded at NSE.

Scrip	Gain	Scrip	Loss
AARTIIND	77.53	IILTD	(30.91)
JAYAGROGN	73.55	NETFINCO	(25.77)
JAICORPLTD	64.01	HILTON	(22.40)
BLUEDART	62.43	FMGOETZE	(21.79)
GMRINFRA	50.55	HINDUJATMT	(21.56)

We have already discussed about some of these stocks in this article.

In our earlier technical reviews we have been tracking some of the stocks. Here is a review of them for this week.

Scrip	Current Price	Trend
Ind Swift Laboratories	58.60	Still not closed above 63.40
Omax Auto	82.15	Not broken resistance 94.70
India Bulls real estate	418.30	Broken its resistance at 420 on 25.06.07
Jindal Photo	111.10	122.30 on weekly close not achieved
Pochiraju Industries	26.10	Continues to form higher lows; next resistance is at 31.95
Punjab Tractors	271.70	Breaks 61.8% retracement and closes below it; bounce back expected.
Apar Industries	167.15	Turned sideways for short term
Bharat Earth Movers	1162	Still bullish
Lakshmi Vilas Bank	76.90	Very oversold in short term charts
Aztec Software	88.50	Breakout direction awaited.

Status of stocks covered in analyst upgrades and downgrades:

Scrip	Current Price	Trend
Development Credit Bank	105	Stock gained 4.27% during the week
Sical Logistics	275.60	Stock lost 6.32% during the week
PSL	296.30	Stock gained 2.24% during the week
ACC	934.95	Breaks resistance trendline; gains 9.70%; turns bullish in weekly charts
Bombay Dyeing	573.95	Gains 3.60%; breaks resistance trendline. However still sideways movement observed in weekly charts
Cipla	208.15	Lost 0.81%
Cambridge	129.75	Stock gained 2.61% during the week
Scrip	Current Price	Trend
Engineers India	510.40	Stock gained 3.49%; breakout on either side anticipated
Tamil Nadu Petro	17.75	Stock gained 1.72% during the week