Consistent buying during the final hours helped the indices (The Sensex and Nifty) recover a part of their losses. However, the market ended the day in the red. The Sensex and Nifty ended with losses of 43 and 7 points respectively.However, stocks from mid-cap and small-cap space managed to end the day on a strong note. On the daily chart, Nifty is still flirting with 200-daily exponential moving average (DEMA) and the trend still remains uncertain. On the other hand, the momentum oscillator KST on the daily chart has turned in the favour of bears,signaling an end of the up-trend. On the hourly chart,Nifty has broken the support of 40-hourly exponential moving average (HEMA), which again favours the bears.On the downside, a good support level where bulls have a chance of a comeback is 3280. Overall, the advance/decline ratio at the time of closing was 1: 2 on the BSE.

The negative trend of the hourly KST is still intact. Our short-term bias is down for the target of 3150 with the reversal pegged at 3550. However, our mid-term bias is up for the target of 3650 with the reversal nailed at 3050.

Buying was witnessed in stocks from metal, realty and capital goods sectors while stocks from banking and fast moving consumer goods space led the pack of losers. From the 30 stocks of Sensex, Reliance Infrastructure (up 6%),Jaiprakash Associates (up 5%) and Tata Motors (up 4%)led the pack of gainers. However, ICICI Bank (down 3%), National Thermal Power Corporation (down 3%) and Hindalco Industries (down 2%) led the clutch of losers.

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

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