Market Update #8

Market opened gap down today at 17,771 and recovered from that level, making a high of 18,091 as shown in the chart below. People started booking profits at 3:00 PM due to which the market closed at 18,003.

This gap down happened due to weak global markets. There was absolutely no panic in the Indian market. It outperformed all the other markets.

Market always need a trigger to move up, this can be a good global news or great quarterly result. We do not have any major event in the month of September. End of September to Mid October is where action will start.

As you can see in the chart below that there is huge gap between yesterday's close and today's opening. Now it was very clear that Nifty will go gap filling. You can clearly see that there was no stopping for NIFTY after 10:00 AM. It clearly filled that huge gap in 4 hours. This is what happens usually after a huge gap down.

Even today, Paradeep rose 4%. This is a very strong sign. One should buy and hold Paradeep for long term. Recommended Paradeep last week when it was 50, today it closed at 66.35. That is a 17% rise in week.

Chemical sector is an outperformer and will continue to outperform.