The stock market has closed today rewarding investors for their faith in the Indian equity markets. NIFTY closed about 1% higher than the last Friday’s close and the SENSEX too followed suit.
The leading sectors of the day, on a closing basis, are IT at 3.3% higher, followed by Auto at 2.6% higher. Next, FMCG and Pharma closed about 1% higher.
Some sectors dragged the market down, though not much, and these included Media, Metal, Banks (both PSU and Private). The maximum drop in an index on the National Stock Exchange (NSE) was limited to about 1.5% lower than yesterday.
Outlook for tomorrow:
The uptrend of NIFTY seems very strong with the 10 day simple moving 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 the prices are in overbought category predicts at least a stall in upmove, if not a reversal. Thus investors and traders are advised to be cautious and maintain stops if the index falls below last Friday’s high price.
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