MUMBAI, APRIL 5: The Sensex recovered to close at 4757, posting a gain of 65 points day overday. Intra-day, it slipped to 4602. Opening at 4616, lower than the previousclose of 4692, it raced up to a high of 4853 in the first one hour oftrading. As profit-booking surged, it reversed in great hurry in the nextfifty minutes to a low of 4602. However, there was a steady recovery whichtook the index to a high of 4757 and the market closed with the index at4757.The intra-day high of 4757 was much lower than the previous high of 4907.The recovery has not been enough to trigger a buy signal on the dailystochastic of the Sensex. On Thursday, the index could surge to 4886, whereit is likely to face a resistance. The underlying driver of signals fromNasdaq will decide the momentum. If the momentum is good enough, then wecould see a recovery to 4980-5050 levels. The number of advances at the BSEhas gone up from 371 to 644, with advance volume jumping from Rs 90 crore toRs 1340 crore. The number of declines have gone down from 1367 to 1014 withdecline volume shrinking from Rs 1288 crore to Rs 447 crore.
Reliance Industries and Infosys accounted for a major chunk of the volumes.Cement stocks are bullish. ACC has recovered the losses of the previous day.India Cement has posted a strong price recovery even on a small volume.Gujarat Ambuja is muted, though. Asian Paints could see further smallimprovement. Bajaj Auto continues to be weak. Bharat Forge is sustaining itsrise. Bharat Petro could weaken. Britannia is good for very short intra-daytrade. At Dr Reddy's, stochastic indicators are yet to turn green.
Grasim is approaching overbought levels, yet it could strengthen andsurprise you further. Hero Honda is worth picking up as declines would belimited. HLL would surge to Rs 2643. Target ITC at Rs 652. Ranbaxy looksrisky technically. With high intra-day volatility at Reliance, look for anopportunity to enter at Rs 266!
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