The First week of August started on a profit-taking note, but the selling was absorbed and the Index is still making new highs. The benchmark index is trading at all time highs and we expect the bullishness to continue. As shown in the above chart, the index had broken out from the channeled move with a bang. Some chartists are worried at the formation that is occurring at the top, a Rising Wedge. A rising wedge has a bearish implication. However the pattern is negated if there is a breakout on the upside.
Sector wise it was the FMCG sector that was leading all the way, followed by the Auto’s. IT, Healthcare and Oil & Gas followed suit. Major losers were the Real Estate and Metals sectors. For the coming month we can look for buying into Banks, which has been an under performer. Staggered buying into the Real Estate and Capital Goods can also be started for investment purposes.
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