Markets on April 21: Volatile

The trading in the market for the day can be wrapped up in a single word—choppy. Finally, the Sensex closed 69 points down, while Nifty en...

The trading in the market for the day can be wrapped up in a single word—choppy. Finally, the Sensex closed 69 points down, while Nifty ended 11 points lower. The BSE Midcap index ended marginally in the red, while the BSE Smallcap index closed positive. The second consecutive close in the red and below 200-day exponential moving average is definitely scary for bulls. On the hourly chart,until Nifty clears the hurdle of falling channel and moving averages, the bulls are going to have tough time. On downside, the support of 3280 is still intact. The negative crossover of daily KST is still intact. The bears dominated the market breadth with 682 declines vis-à-vis 540 advances.

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

Realty and fast moving consumer goods stocks saw some buying while banking and auto stocks were hit the most.From the 30 stocks of the Sensex Bharti Airtel (up 4%), Hindalco Industries (up 4%) and Sun Pharmaceutical Industries (up 3%) led the pack of gainers. However, Tata steel (down 7%), ICICI Bank (down 6%) and Maruti Suzuki India (down 5%) led the clutch of losers.