The indices broadly traded range bound for the day. The struggle to find direction on either side has intensified, as indicated by inside bar formation today. This implies that the next bar should ideally decide the trend from hereon. The indices though look set for a bounce with a positive close today, a 38% bounce will take Sensex and Nifty close to 9300 levels and 2865 levels respectively. Moreover 2800 remains the level to watch for Nifty with immediate supports pegged at 2730-2750.
On hourly charts the momentum has picked up. A positive crossover has held for the day and the pull back looks very much possible. The 20 DEMA placed around 2840 should be the initial target. Heavyweight Reliance Industries holds the key. The short-term bias is revised up with reversal pegged at 2734 and target at 2865.
Banking stocks under-performed for the day with ICICI Bank looking weak and if the stock goes below Rs357 it will fall till Rs330. Maruti Suzuki India had a good run and Rs650 is on cards. ABG Shipyard looks strong and could target Rs104 levels the moment it goes past Rs96.