Strong selling activity during the final hour led the indices to lose most of their gains to end the day marginally in the green. Finally the Sensex ended with gains of 105 points, while Nifty ended 15 points up. Stocks from the mid-cap and small-cap space ended the day on a positive note as well. The daily chart shows that Nifty is flirting with 200-daily exponential moving average (DEMA), which indicates that the tug of war between the bulls and bears is quite strong. On the hourly chart, even though the hourly momentum is dying, Nifty has not yet broken the support of 40-hourly exponential moving average and also the support of rising trend line, which is not a good sign for bears. The daily momentum oscillator KST has not yet reversed and the positive crossover is still on the cards.The overall advance/decline ratio at the time of closing was neutral at 1:1 on the BSE.
The negative trend of the hourly KST is still intact. Our short-term bias is revised down for the target of 3150 with the reversal at 3550. However, our mid-term bias is still up for the target of 3650 with the reversal nailed at 3050.
Stocks from realty and banking space led the pack of gainers today, while healthcare and metal stocks bore the brunt of profit booking. From the 30 stocks of the Sensex Larsen & Toubro (up 4%), Infosys Technologies (up 4%)and State Bank of India (up 3.5%) led the pack of gainers.However, Hindalco Industries (down 5.18%), Tata Steel (down 4%) and Sterlite Industries (down 3%) led the pack of losers.