Markets on July 10, 2009: Final hour selling (Drown in red)

Massive selling during the final trading hour drowned the indices deep into the red. The Sensex ended 253 points lower, while Nifty closed...

Massive selling during the final trading hour drowned the indices deep into the red. The Sensex ended 253 points lower, while Nifty closed 77 points down. BSE MIDCAP and BSE SMLCAP closed the day around 1.85% down. Since Nifty has accomplished the conservative target of head and shoulders pattern, it is now expected to march towards its aggressive target. On upside, 4130 is a good resistance around which traders should look for initiating fresh shorts. The overall decline to advance ratio stood at 3.5 to 1 on the NSE.

The hourly momentum cycle is about to turn negative.Our short-term bias is revised down for the target of 3850 with reversal pegged at 4130. Also, our mid-term bias is still intact on the downside for the target of 3870 with reversal placed at 4700.

Bar information technology stocks, all other sectors saw selling with energy, power and realty stocks at forefront.From the 30 stocks of Sensex, Wipro (up 3%) and Sterlite Industries (up 3%) led the pack of gainers, while Reliance Infrastructure (down 6%), Jaiprakash Associates (down 6%) and Reliance Communications (down 5%) were hit the most.