The indices crept up at the end of another flat week, with the Sensex finishing 0.98% or 175.16 points higher, and the Nifty 1.02% up. The CNX Midcap Index gained just 0.34%.
Tata Steel was the biggest winner among index stocks with a 5.3% gain. The other index stocks to go up included Hindalco, Bharti Airtel, Sterlite Industries and Mahindra & Mahindra with gains between 5.2% and 3.8%. Hindustan Unilever was the biggest loser among index stocks with a 1.7% loss. The other index stocks to go down included Maruti Suzuki, Cipla, Jaiprakash Associates and Reliance Infrastructure with losses falling between 1.5% and 1.4%.
INTERMEDIATE TREND: The market remains in an intermediate uptrend. The Sensex would now have to fall below 17,825 to enter a downtrend. The equivalent for the Nifty is 5,350 and that for the CNX Midcap is 8,300.
The indices have flattened out in the last two weeks, but this uptrend could still turn out to be a substantial one. This is because the preceding downtrend had resulted in a relatively small correction of just over 500 Sensex points, instead of the 2,000-odd point falls that accompanied the three preceding downtrends.
A handful of global markets are now in intermediate uptrends, and this could lead to a global uptrend soon. Our market was one of the first to enter an uptrend.
LONG-TERM TREND: Our market has not been affected much by global declines in the last two-three months, which is why the uptrend here could be a significant one once a global uptrend develops. An upward breakout from the long-running sideways range would then take place.
Most global indices have falling intermediate tops and bottoms, and are below their 200-day moving averages - indicating that a global bear market is on. However, the phase has been one of mild declines. Some of the global indices are now quite close to climbing above their last intermediate tops, and the global long-term trend could also turn up again.
Source : Economic Times
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