Despite posting a new all-time peak of 12994.45 on Tuesday last, the Sensex stagnated a bit prior to the festive season and just before the expiry of the derivatives series on Thursday, October 26
The Sensex seems to be suffering from holiday blues. Despite posting a new all-time peak of 12994.45 on Tuesday last, the Sensex stagnated a bit prior to the festive season and just before the expiry of the derivatives series on Thursday, October 26.
The Sensex faced resistance closer to the crucial 13,000 levels indicating its mild corrective nature, while trading volumes have improved. The negative advance-decline line coupled with healthy turnover would seem to reflect noticeable resistance at higher levels. This is not surprising, considering what happened during the previous record high of 12671.11.
The markets last week saw relief selling. But it remains to be seen how the Sensex absorbs this resistance. This will determine the upside from here on. While blue chip stocks have risen, mid and small caps have been complete laggards, with probably a few exceptions.
The bull run seems to have taken a siesta, by giving a downward key reversal on the weekly technical chart. Six sectoral indices closed negative, indicating a broad-based cool off.
Possibilities remain of a further upside from here (as long as the sanctity of the 12654 level is maintained), probably towards the 13000+ levels.
J M Morgan Stanley in a latest earnings report expects Indian media firms to report robust Q2FY07 numbers on the back of increased advertising rates and improving margins. Zee is expected to clock impressive growth due to advertising rate hikes.
NDTV is likely to show a sharp increase due to increased advertising revenues and a low base effect. Mepheus Inc. Sebi Disclosure: The author is an active market participant and could be having positions in the stocks mentioned above.
Morpheus Inc
Sebi disclosure: The author is an active market participant and could be having positions in the stocks mentioned above.
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