The stock market has closed today rewarding investors fortheir faith in the Indian equity markets. NIFTY closed about 1% higher than thelast Friday’s close and the SENSEX too followed suit.
The leading sectors of the day, on a closing basis, are ITat 3.3% higher, followed by Auto at 2.6% higher. Next, FMCG and Pharma closedabout 1% higher.
Some sectors dragged the market down, though not much, andthese included Media, Metal, Banks (both PSU and Private). The maximum drop inan index on the National Stock Exchange (NSE) was limited to about 1.5% lowerthan yesterday.
Outlook for tomorrow:
The uptrend of NIFTY seems very strong with the 10 day simplemoving average above the 21 day simple moving average, and both at 45 degrees.However, today a hammer candle has been formed. For this to be formed when theprices are in overbought category predicts at least a stall in upmove, if not areversal. Thus investors and traders are advised to be cautious and maintainstops if the index falls below last Friday’s high price.