Volatility was the order of the day. After languishing in the red during the morning session, the markets witnessed lot of volatility during the day, hovering around the previous close. The benchmark Sensex closed 19 points up, while Nifty closed 23 points higher. However, mid-cap and small-cap indices posted loss for the day. After today’s positive close the situation is critically poised, as bulls stand a good chance to make a comeback. However, untilthe hourly averages are breached we are biased in favour of bears. Further, the hourly KST has given a positive crossover after a positive divergence, which is also a sign of caution. Bears marginally outnumbered the bulls in terms of market breadth with 686 declines and 496 advances.
Our short- and mid-term biases are still maintained with a downward bias for the target of 2550 and 2450 respectively with the short- and mid-term reversal nailed at 2800 and 3111.
Metal and energy stocks posted gains for the day while banking and capital goods stocks registered losses. Of the 30 stocks that make the Sensex, Reliance Infrastructure (up 5%) and Grasim Industries (up 4%) led the pack of gainers, whereas ICICI Bank (down 4%), HDFC (down 3%) and Bharat Heavy Electricals (down 2%) topped the chart of losing stocks.