Stock of the day (Monday) : LIC Housing Fin (buy)

LIC Housing Fin finished strong, and could make further gains unless the market falls heavily today. It is a buy recommendation with a stop loss below 326. It would be best bought below 333./div>

Outlook (Monday) : Global rally likely to boost stocks

European markets surged on Friday, and the US indices also posted strong gains with the Fed talking up markets. Most Asian markets are up this morning with fairly strong gains. The Nikkei has surged over 3%. The SGX Nifty was up 160 points a little before our open.

Our market made moderate gains on Friday, but is likely to make a strong move today in keeping with the global rally that is now on.

Intermediate Trend : downtrend still on

The chart on the left shows the nifty between June 2 and Oct 17. The points marked "T" are intermediate tops, while those marked "B" are intermediate bottoms.

The dashed line in the centre of the chart is the 200-day moving average of the nifty.

The sensex is in an intermediate downtrend which started on Sep 8 when the index reached 27,355 (T-17).

Long-term Trend : up

The chart on the left shows the sensex between June 2 and Oct 17. The points marked "T" are intermediate tops, while those marked "B" are intermediate bottoms. 

The dashed line in the centre of the chart is the 200-day moving average of the sensex.

Our market’s long-term (major) trend remains up, with the main as well as broader indices persisting above their 200-day moving averages, and showing rising intermediate tops and bottoms on their charts.

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