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Sunday, May 2, 2010

The Nifty Heavy Weights

Nifty's Biggest Constituents Revisited....!

The S&P Nifty index closed the month of April, 2010 at 5272 with a very small gain of 20 points. The monthly high and low were at 5399 and 5161 respectively.  The Nifty Futures closed without any gains during the month. In this process the S&P Nifty,  the Nifty Futures and the BSE Sensex all formed doji candles in their monthly charts. Doji candles indicate indecision by the market participants about the direction of the markets. It can also be a reversal signal.

Nifty Futures - Monthly Chart


Nifty Heavy Weights

Now let us check the biggest ten equity issues which moves the Nifty index in relation to their daily moving averages.

 Nifty Heavy Weights - Weightage, Close & DMAs


As you can see from the above table, Reliance and LT have weakened during the month and these issues are trading below their major DMAs. HDFC Bank is the best performer in the group and is trading at new highs. Following the leader, SBI and ICICI  Bank are also trading  12 % above their 200 DMAs. Even after some corrections, the IT majors, Infosys and TCS are still trading 15 % higher than their 200 DMAs. 

Most of these heavy weight issues traded sideways during the month of April and therefore, the doji candle in the S&P Nifty Index. Most of the trading has been centered about the midcaps and the small caps during the month.  There were even some reports saying that the BSE has caught  up with the NSE in the number shares traded on a day, which reinforces the above opinion. As the present uptrend has been a long one, a correction may also be around the corner.

Cheers and Prosperous Investing !!!

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