Business Standard

Sensex likely to cross 17,000-mark

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B G Shirsat Mumbai
After the pullback seen in the last four days, the Sensex and Nifty are heading towards the 200 days moving average (200-DMA).
 
The Sensex's 200-DMA is 17,150 and that for the Nifty is 5,020. The intermittent rallies that have taken place since January could not propel the relative strength index (RSI) above the 50-60 band. The Sensex's RSI is around 56, while it is 60 in case of the Nifty. 

TECHNICAL TARGETS
Sensex stock trading closer to 200DMA

Name

Current price200DMA@
Reliance Ind2,298.702,340.381.81
NTPC196.75202.592.97
Tata Motors679.40716.715.49
Larsen & Toubro3,046.303,227.745.96
Reliance Energy1,297.651,380.926.42
Satyam Computer413.00440.266.60
Maruti Suzuki845.35902.176.72
Mah & Mah680.05726.036.76
BHEL1,954.952,089.796.90
SBI1,713.601,838.857.31
@ per cent change of 200DMA price
 
The markets corrected on Wednesday, with the Nifty closing lower at 4,820, down 50 points, and the Sensex ending at 16,060, weak by 130 points. Profit-taking was inevitable after four uptick days.
 
Vibhav Kapoor, chief investment officer, IL&FS, expects the Sensex to make an attempt at crossing 16,800-17,000 as the markets will have to technically move towards these levels after the recent recovery. This is also the 200-day moving average for Sensex, he said.
 
Of the 30 Sensex stocks, only seven are trading above the 200-DMA, while 23 are quoting almost 5-20 per cent below their 200-DMA. The stocks trading below 200-DMA are Cipla, Ranbaxy, Hindustan Unilever, ITC and HDFC Bank and these have a low weightage on the Sensex.
 
HDFC and ONGC are the only two index heavyweights which are trading above the 200-DMA. Reliance Industries is trading at Rs 2,300, almost two per cent below its 200-DMA of Rs 2,340.
 
The next technical target for Reliance would be the 50-DMA, which is Rs 2,504. ICICI Bank, which has corrected severely after suffering mark-to-market losses in derivatives, is trading 25.6 per cent below its 200-DMA of Rs 1059.26.
 
The stock is trading at Rs 843.25 on Bombay Stock Exchange. Larsen & Toubro, however, has recovered from its recent slump and is now trading a mere six per cent below its 200-DMA.

 

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First Published: Mar 27 2008 | 12:00 AM IST

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