After opening the day on a positive note, domestic indices quickly slid below the previous close. For the rest of the day, the markets saw lot of volatility with the indices attempting to cross the previous close many times.However, in the final hour of the trade, the indices witness a near-precipitous fall with Sensex closing 195 points down and Nifty ending 52 points lower. Mid-cap and small-cap indices also ended on a weak note. The daily chart depicts that Nifty is presently trading between two falling channels,and unless either one of it is broken bears will rule the roost. Further, after the lower top lower bottom confirmation, the next support for Nifty is around 2502,which is the previous swing low. The daily momentum indicator KST also supports the move directed by the falling channel. On the hourly chart, after breaching the neckline of head and shoulders pattern, Nifty has continued its streak of lower peaks. Market breadth was dominated by the bears with 860 declines and 316 advances.
The hourly momentum oscillator KST is still in down mode.Our short- and mid-term biases are down for the target of 2550 and 2450 respectively with the short- and mid- term reversal nailed at 2800 and 3111.
Selling was all-pervasive, spawning across sectors, with the stocks from consumer durables and fast moving consumer goods space taking the lead. From the 30 stocks of Sensex, Grasim Industries (up 3%) and ACC (up 1%) led the pack of gainers, while Tata Power (down 6%), Reliance Communications (down 4%) and ITC (down 4%) topped the list of losing scrips for the day.