Break in four-day winning streak on NSE and BSE

After opening in green on very strong global cues, Nifty
gave up all its gains and finally ended in red snapping
four-day long winning streak. Nifty has turned down right
from 61.8% retracement of the fall from 5182-4538. So if
this high is held, the next leg down will ensue and will
drag Nifty down quite lower. The downtrend which started
from 5182 gets more confirmed when we observe the
broader indices such BSE Metal, BSE Midcap etc, which
had five wave declines signaling that this pullback is just
a retracement of the fall and once it gets over the next
leg down with five wave declines should start. Also, there
is a gap and averages resistance at higher levels near
4940-4970. So till Nifty trades below these levels we
maintain our bias down.
On daily chart, Nifty is trading below its 20 daily moving
average (DMA) and 40DMA at 4922 and 4938 respectively,
which are strong resistance in the near term. The
momentum indicator (KST) has given positive crossover
and is below the zero line. The market breadth was
negative with 565 advances and 715 declines on the NSE
and 1,329 advances and 1,551 declines on the BSE.
On hourly chart, Nifty is trading above its 20 hourly moving
average (HMA) and 40 HMA at 4839 and 4758 respectively,
which are now supports in the short term. The momentum
indicator (KST) has given negative crossover and is trading
above the zero line.
Nifty and the Sensex shed 17 and 58 points respectively.
Of the 30 stocks of the Sensex, Tata Motors (up 2.26%)
and State Bank of India (up 2.14%) were the top gainers
while Hero Honda Motors (down 3.27%) and Bharti Airtel
(down 4.47%) were the top losers.