Markets on March 24: Hourly averages intact

After a gap-up opening, Indian markets went down due to selling at higher end and could not hold the opening gap. Finally, Sensex closed 4...

After a gap-up opening, Indian markets went down due to selling at higher end and could not hold the opening gap. Finally, Sensex closed 47 points up, while Nifty ended flat. However, mid-cap and small-cap indices posted losses for the day. On the daily chart, Nifty failed in clearing the upper boundary of the triangle. Further, on the hourly charts, after kissing the upper boundary of the rising channel, Nifty slipped back, in the corner of bears. On the downside, Nifty has good support of 20- and 40-hourly moving averages, which are nailed at 2883 and 2843 respectively. The daily KST is still in buy mode, which points today’s fall as a small dip in the current rally. The market breadth was in favour of bears with 748 declines and 470 advances.

The hourly KST gave a negative crossover. Our short-term bias is up for the target of 3050 with reversal pegged at 2815. However, our mid-term bias is still down for the target of 2450 with reversal at 3111.

Selling was witnessed across sectors, though some stocks from banking and realty space found favour. From the 30 stocks of Sensex, HDFC Bank (up 6%), ICICI Bank (up 2%) and HDFC (up 2%) led the pack of gainers, while Jaiprakash Associates (down 7%) and Hindalco Industries (down 5%) led the clutch of losers.