Markets on March 18: Shooting star (Rising channel disrupted)

The market shed a part of its gains during the final hour due to profit booking, but still ended the day on a healthy note. Sensex and Nif...

The market shed a part of its gains during the final hour due to profit booking, but still ended the day on a healthy note. Sensex and Nifty closed 113 points and 40 points up respectively. Mid-cap and small-cap indices also posted gains for the day. On daily candlestick chart, Sensex has formed a shooting star, which indicates that the current rally is aborted and we may see a small dip. Further, Nifty has reacted form the upper boundary of the falling channel and did not succeed in clearing it. On hourly chart, Nifty has broken the rising channel after a negative divergence. The only sign favouring the bulls was the market breadth,which was positive with 845 advances and 362 declines.

Hourly momentum cycle KST is still driving its negative crossover. Our short- and mid-term biases are down for the target of 2630 and 2450 respectively with the hortand mid-term reversal pegged at 2840 and 3111 respectively.

Buying was witnessed across sectors, with realty and metal stocks at the forefront. However, BSE FMCG ended the day in the red. From the 30 stocks of Sensex, DLF (up 8%) and Jaiprakash Associates(up 6%) led the pack of gainers, while Mahindra & Mahindra(down 4%) and Tata Power (down 2%) were hit the most.