| Week Ahead: Mkt jumps on short covering |
| MACRO TECHNICALS |
| Devangshu Datta / New Delhi September 3, 2007 |
| It's difficult to tell yet if this is a technical correction inside a major downtrend. |
| The market rebounded strongly through settlement week as short-covering triggered a technical recovery. |
| The Nifty closed at 4464 points for a rise of 6.54 per cent while the Sensex closed at 15318.6 points for a rise of 6.19 per cent. The Defty was up 6.93 per cent as the rupee also strengthened. The Nifty Junior jumped an incredible 8.14 per cent. |
| The recovery was across the board with the BSE 500 rising 6.64 per cent and a positive advance-decline ratio. This was despite FIIs being net sellers until the end of the settlement on Thursday. |
| Domestic mutual funds were net buyers and so were operators and retail traders. The Bank Nifty also jumped 8.08 per cent despite bearish pronouncements from the RBI. The CNX IT rose 5.09 per cent despite the adverse rupee situation. Volumes were average for a settlement week. |
| Outlook: The Nifty could run into selling pressure on Monday but it is likely to find a primary support at 4400. The intermediate downtrend has apparently reversed |
