The Indiastreet has remained bullish on Indian stock market. We have seen in our previous weekly reviews that the medium term trend and long term trend are bullish. This week was an interesting one and now we have the confirmation that the bulls are back on track.
In last week’s review I had mentioned that, “However, let us be slightly realistic rather than over enthusiastic. The last three trading sessions have witnessed three lower lows of 4342, 4312 and and 4304 respectively. This is not an encouraging sign. Moreover, the stochastic indicators tell us that the market has entered overbought zones. Under the circumstances, a corrective decline next week cannot be ruled out. This correction, if occurs, will only be a healthy sign that the bull market will continue its uptrend.”
On Monday Nifty was up by 34.55 points. Tuesday and Wednesday witnessed corrective declines of 13.35 and 18.90 points respectively. Yesterday the market was buoyantly up by 59 points. Today the market was up once again by 58.40 points. Overall, the index has closed at 4505, gaining 119.70 points or 2.73% for the week.
This movement indicates that the market continues its short term bullish trend. The daily chart of Nifty is shown below.
The index continues to remain overbought in daily charts. But as I mentioned earlier, it is quite normal during a bull market. The Wilder’s DMI (28) also indicates a reasonable uptrend.
In my first weekly review I had mentioned that “the weekly chart shows that there is an ascending triangle breakout with a triangle height of about 690 points. This when added to 4245 gives a target of 4935”. In the monthly charts, 38.2% retracement from a low of 3555 in March 2007 works out to 4913. So we can expect a target of 4915+ if this trend continues.
As of now, there is no significant reversal signs in short, medium or long term charts. Corrective declines in index will be good opportunities to enter.
Update on Everonn IPO:
Everonn Systems India Limited, a fully integrated education and learning Solutions Company, has received an overwhelming response for their initial public offering and the issue has been oversubscribed 131.47 times. High Networth Individuals (HNI’s) have oversubscribed the issue by 227.81 times.
| Investor type | Oversubscription, x times |
| Qualified institutional buyers | 92.95 |
| Non institutional investors | 277.81 |
| Retail individual investors | 123.80 |
| Total | 131.47 |
Top Gainers / Losers (Index Stocks)
| Scrip | Gain (%) | Scrip | Loss (%) |
| SAIL | 21.70 | HEROHONDA | 2.93 |
| REL | 13.08 | RANBAXY | 2.62 |
| HINDALC0 | 12.82 | HINDPETRO | 2.30 |
| TATASTEEL | 11.63 | TCS | 1.95 |
| STER | 11.35 | SUZLON | 1.70 |
Top Gainers / Losers (Overall market)
| Scrip | Gain (%) | Scrip | Loss (%) |
| KOTHARIPRO | 52.89 | NSIL | 11.24 |
| COLORCHIPS | 52.17 | WENDT | 10.68 |
| BSL | 50.58 | HOVS | 8.90 |
| MURUDCERA | 43.22 | TIPSINDLTD | 8.75 |
| MSPL | 37.81 | KALECONSUL | 8.47 |
Advance / Decline Ratio:
| Date | Traded | Adv | Ad % | Dec | Dec % | Unch | Unch % |
| 09/07/07 | 1122 | 687 | 61.23 | 408 | 36.36 | 27 | 2.41 |
| 10/07/07 | 1126 | 431 | 38.28 | 672 | 59.68 | 23 | 2.04 |
| 11/07/07 | 1126 | 571 | 50.71 | 520 | 46.18 | 35 | 3.11 |
| 12/07/07 | 1125 | 771 | 68.53 | 324 | 28.80 | 30 | 2.67 |
| 13/07/07 | 1127 | 484 | 42.95 | 623 | 55.28 | 20 | 1.77 |
| Total | 5626 | 2944 | 52.33 | 2547 | 45.27 | 135 | 2.40 |
We have been tracking 42 stocks in our technical reviews / analyst upgrades / short term / medium term / long term picks. Following table shows the status of these stocks as on today:
