Stock of the day (Thursday) :Century Textiles (buy)

Century Textiles finished strong, and could make further gains unless the market falls heavily today. It is a buy recommendation with a stop loss below 625. It would be best bought below 643.

Outlook (Thursday) :Mixed session likely today

European markets went up last night, with small to moderate gains. The US indices were mixed, with the NASDAQ up and Dow down. Asian markets are up this morning with moderate gains. However, the SGX Nifty was down 15 points.

The main indices have been rising while midcaps have struggled. We may see another mixed session today with Asia up while the SGX Nifty is down.

Intermediate Trend : downtrend may be ending

The chart on the left shows the nifty between Mar 3 and July 23. 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 July 8 when the index made a top at 26,190

Long-term Trend : up

The chart on the left shows the sensex between Mar 3 and July 23. 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 - i.e. major trend - is up, with all the indices remaining comfortably above their 200-day moving averages, and with rising intermediate tops and bottoms.

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