After opening on a volatile note, the markets slipped in the morning session itself. However towards the second half of the day they staged a smart comeback, crossing the previous day’s close, only to slide into red towards the fag end. Sensex closed 20 points down, while Nifty closed higher by 6 points. Mid-cap and small-cap stocks finished the day with losses. On the daily chart, Nifty is resting at the lower trend line of the symmetric triangle, which indicates that the bulls and bears have equal chances of carrying the day. The daily KST is rolling downwards after the negative crossover. On intra-day charts of Nifty had negative crossover of 20 and 40 hourly moving averages, which tilts the balance in favour of bears. The hourly momentum indicator KST has given a positive crossover, which indicates that we may see a bounce in the coming session, but the probability of prices clearing the intersection point of the two hourly averages is slender. Bears dominated the market breadth with 693 declines and only 469 advances.
Our short- and mid-term biases are still intact for the target of 2730 and 2450 respectively with the short- and mid-term reversals pegged at 2855 and 3111.
Realty and energy scrips had a day, while banking and information technology scrips closed the day on a weak note. From the 30 stocks of Sensex, DLF (up 7%) and Maruti Suzuki India (up 4%) led the pack of gainers while HDFC (down 5%) and Mahindra & Mahindra (down 5%) led the pack of losers.