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Stock of the day (Thursday) : Chambal Fertilisers (sell)

Chambal Fertilisers finished weak, and could fall further unless the market bounces back strongly today. It is a sell recommendation with a stop loss above 41. It would be best sold above 42.

Outlook (Thursday) : Global sell-off will hit stocks

European markets declined last night and posted moderate losses. The US indices fell more heavily. Most Asian markets are down sharply this morning, with several indices having lost over 2%. The global short-term trend is down, and the decline is a heavy one.

Our market improved marginally yesterday, but is likely to fall today with a global sell-off happening.

Intermediate Trend : downtrend still on

The chart on the left shows the nifty between Feb 1 and June 19. 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 that began on May 20 when the index made a top at 20,444.

Long-term Trend : sideways

The chart on the left shows the sensex between Feb 1 and June 19. 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.

The sensex and nifty’s long-term trend is best seen as sideways, as they do not have a clear sequence of rising or falling intermediate tops and bottoms. The broader CNX Midcap and BSE SmallCap indices have falling intermediate tops and bottoms, indicating that their long-term trends are down. They could also show a sideways tendency if the current decline ends with a higher intermediate bottom.

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