Markets on February 5: Support at 2752
The Indian markets started the day on a positive note, however soon they moved into the red on the back of heavy selling. Further, in the final hours, the markets saw some paring of early losses. Finally, Sensex and Nifty ended in the red with a loss of 110 and 23 points respectively. Stocks from mid-cap and small-cap indices also ended in the red. Today’s negative close and the breach of previous swing low of 2780indicate that we may witness an extension in the down-move in the coming session and that the support of 2752 is likely to get breached. On hourly chart, the last hour pullback of Nifty seems to be a trap for the bulls, as Nifty has not yet broken through the wall of moving averages, and on downside if the support of 2752 is broken the descending triangle, which is under formation, will break on downside. Both daily and hourly momentum indicators are flat and have not yet given any decisive move on either side. Bears dominated the market breadth with 746 declines and 425 advances.

Our short- and mid-term biases are down for the target of 2661 and 2450 respectively with the short- and midterm reversals at 2885 and 3111 respectively.

Overall, bears dominated sectoral performance. From the 13 sectors of BSE only metal sector posted gains, while all other sectors contributed to the fall, with auto and consumer durables losing the most. From the 30 stocks of Sensex, Grasim Industries (up 3%), Tata Steel (up 2%) and Ranbaxy Laboratories (up 1%) led the pack of gainers. On the other hand Sterlite Industries (down 6%) and Mahindra & Mahindra (down 6%) led the pack of losers.

(Disclaimer : The above chart shown is for study purpose only and not for trading decision)

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