Today’s trading session was marked with intense volatility,as there was a strong tussle between the bulls and the bears. After kissing 3400 mark in the opening session, the market ended lower on account of profit booking at higher levels. Finally, the Sensex closed with gains of around 60 points, while Nifty ended flat. Stocks from the mid-cap and small-cap space ended the day in the green as well. Nifty seems to have faded near the 200-daily exponential moving average, which is not yet cleared. The hourly chart shows that the current trend is loosing momentum for the reason that the momentum oscillator KST is diverging. Further, on the breach of the bullish trend line, the streak of rising peaks will get disturbed, which will be an alarming signal for the bulls. Below that,the 40–DEMA can provide a ignificant support to the bulls,but if that is violated a steep fall cannot be ruled out. The daily momentum oscillator KST is still driving its positive crossover. Bulls dominated the market breadth with 820 advances and 425 declines.

The hourly KST has given a negative crossover. Our shortterm bias has been revised down for the target 3120 with the reversal pegged at 3405. However, our mid-term bias is still up for the target of 3450 with the reversal at 3120.

Buying activity was witnessed in stocks from realty and metal sectors. However, stocks from the auto and fast moving consumer goods sectors bore the brunt of profit booking. From the 30 stocks of the Sensex, Tata Steel (up 8%), Jaiprakash Associates (up 7%) and Reliance Infrastructure (up 6%) led the pack of gainers. However Hindustan Unilever (down 3%) and Mahindra & Mahindra (down 3%) led the pack of losers.

(Disclaimer: The above chart shown is for study purpose only and not for trading decision)

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