Indian markets were down at the opening bell due to weak cues from overseas markets. However consistent buying all through the day led the indices undo most of the losses, but still end the day in red. Sensex closed 14 points down, while Nifty was only two points down. Mid-cap and smallcap indices also posted losses for the day. On daily chart, Nifty has just ended at the lower trend line of the symmetric triangle, where it is expected to take support. Further, on hourly chart, Nifty has given a breakout from an inverted head and shoulders pattern, whose conservative target is around 2780. The validity of inverted head and shoulders pattern breakout also increases, as Nifty has also cleared the falling wedge. Bears dominated the market breadth today with 853 declines and 340 advances.
Hourly momentum has also turned positive, which again favors the bounce up to 2780 in the coming session. Our short-term bias is up for the target of 2865 with reversal nailed at 2705. However, our mid-term bias is still down for the target of 2450 with reversal pegged at 3111.
Most of the sectoral indices posted losses for the day and those indices that posted profit for the day did so only marginally. Fast moving consumer goods and auto space stocks led the pack of gainers whereas metal and banking scrips were hit due to profit booking. From the 30 stocks of Sensex Mahindra & Mahindra (up 5%), Ranbaxy Laboratories (up 4%) and Grasim Industries (up 3%) led the pack of gainers while HDFC (down 5%) and Tata Steel (down 5%) were the top losing stocks of the day.