The trading pattern showed conflicting signals this week. A strong revival in the US Nasdaq gave impetusto tech stocks. But there was profit-taking in old economy counters and a general sell-off on Friday.
The Sensex lost 0.6 per cent at 3656.77 points while the Nifty gained 0.82 per cent at 1187.65 points. The Defty rose 0.84 per cent as the rupee recovered from new lows. The broadbased BSE500 rose 1.28 per cent.
The Nifty-Sensex-Bse500 positions show positive divergence but other breadth signals were neutral. Volumes were average. The Advance-decline ratio was marginally negative. The put-call ratio showed a small rise from low levels.
To read the short-term and intermediate trend is difficult. It looked clearly bearish immediately after the Budget but prices improved substantially last week.
However the peak was at 2758, which is exactly the same as the pre-Budget peak levels. This is a double-top, signifying strong resistance at the 2758 level and signaling short-term bearishness.
The Put-Call ratio is stuck in a range. Usually the Put Call ratio has been highest at market bottoms but it doesn
