Indices recover lost ground, close at new high; metals outperform other sectors

摘要

A smart pull back by the indices was witnessed in the last week lead by oil and gas stocks and the metals sector. The metals sector has been exhibiting a smart performance in the past few weeks as the BSE Metal index has been rising and outperforming most of the other sectors. This has resulted in the relative strength line for the sector turning bullish suggesting that the stocks in this sector are moving higher and are outperforming the indices. The indices recovered all the lost ground in the last week and again closed at new highs indicating that the bulls are still strong and the new levels for the sensex and the nifty to drop into a fresh intermediate downtrend are at 11,008 and 3290 respectively. The indices have been moving in a rising channel and the recent minor bottom becomes an important level for the indices and any drop below this level will mean a start of a corrective mode for the indices. The rising channel has been intact since last Diwali and a drop below this level will mean a start of a correction to this uptrend.