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  • Date Submitted: 06/22/2011 01:57 AM
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VOL. XIX No. 33





Pages 18 Rs.12

Upside to be capped

By Sanjay R. Bhatia The markets remained range bound amidst occasional bouts of volatility and choppiness due to the derivatives segment expiry. Intermediate bouts of profit taking and selling pressure were also visible. The volumes recorded remained low amidst positive breadth of the market. Incidentally, FIIs remained net buyers in the cash as well as the derivative segment. Mutual Funds, on the other hand, continued to press sales and remained net sellers booking profits at regular intervals. The crude oil prices hovered around the $76 level on the back of high US inventory data. The global economic news continued to paint a mixed picture with the European economies remaining in distress. The food inflation continued to move higher and is likely to trigger monetary action from RBI. Technically, the Stochastic oscillator is placed in the overbought zone on weekly charts but has come off the overbought zone on daily charts. This would trigger a bout of profit booking and selling pressure at higher levels. Even the RSI has breached its average, which is a negative sign in the short-term. The KST is placed in the positive territory and above its signal and trigger line, which augurs well for the markets. The ADX continues to move sideways indicating a range bound trend. Even the +DI line is struggling to move higher. The CNX Nifty and the BSE Sensex are placed above their 200-day SMA, which is a positive sign. The negative divergence pattern formed also continues to still hold good even after the...


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