The markets caved in today, as selling pressure that started from opening bell persisted right till the finishing post. In fact, India is the top loser amongst its Asian peers, today. The Sensex ended 370 points down, while Nifty closed 107 points lower. Mid-caps and small-caps were also hit badly with the two ending lower by 3.8% and 3.4% respectively. On the daily candlestick chart, the Sensex has formed a black opening Marubozu candle (a bearish candle with no upper shadow), which is a sign of weakness. On the hourly chart, Nifty has confirmed the double top formed around 3500 level, as the hourly averages and rising channel got violated. For the coming session, Nifty may face resistance around 3400 and 3440 levels. Bears ruled the roost with 1042 declines and 178 advances.

On the hourly chart, the negative trend of momentum oscillator KST is still strong. We are lowering our shortterm target to 3290 with the reversal pegged at 3520. However, our mid-term bias is still up for the target of 3700 with the reversal pegged at 3290.

Scrips from all the sectors were bashed for the day, with those from realty, metal and banks beaten and bruised the most. None of the 30 stocks from the Sensex’ basket posted gains with DLF (down 8%), Sterlite Industries (8% lower) and Tata Steel (down 8%) registering highest losses for the day.

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

Author Name

Contact Form

Name

Email *

Message *

All Rights Reserved © 2008 Shubhlaxmi Investment. Powered by Blogger.