The market opened higher tracking overseas markets but gave up the gains before noon and remained volatile. The last hour of the trading session witnessed hectic activity as the Nifty breached the 3400 mark. The higher levels were not held for too long as profit taking near the 200- DMA led to lower prices. The Nifty is trading above the 20-DMA and the 40-DMA, ie 2993 and 2954 respectively, which are crucial supports going forward. The momentum indicator in the daily charts is in the positive zone and is trading above the zero line. The market breadth was positive with 1,021 advances and 228 declines in the Nifty,and 2,051 advances and 538 declines in the Sensex.
On the hourly chart, we are witnessing a rising wedge,which is a bearish reversal pattern with a break-out at 3334 and resistance at 3418. The momentum indicator KST has given a negative crossover with a negative divergence but is trading above the zero line. Our shortterm bias is down with resistance at 3420 and target of 3120.
The Sensex and Nifty ended the day with a gain of 163 points and 40 points espectively. Of the 30 stocks of the Sensex, SBI (up 6.8%) and Tata Steel (up 8%) were the top gainers while Wipro was the top loser with a loss of 2.30%. Buying activity was witnessed in stocks from the metal and banking sectors. However, stocks from the IT sector were down