Bulls stage fierce recovery to 5050 levels

Today, Nifty staged a strong bounce-back from its intraday
low, giving a close above the psychologically important
5050, which is 78.6% retracement of the previous fall.
However, to gain more strength, it needs to close above
5080. On lower side, 4920 was held as good support in
the short term. Going forward too, till this level is held
we may see good amount of buying. Nifty posted a weekly
positive close; Toast to the bulls. The index also closed
above 5050 giving further conviction for the up-move—
Cheers to the bulls. But, till the swing high is not surpassed
we maintain our bias down, as today’s move is anticipated
just as retracement of this fall.
On daily chart, Nifty is trading above its 20 daily moving
average (DMA) and 40 DMA at 4914 and 4894 respectively,
which are now supports in the near term. The momentum
indicator (KST) has given positive crossover and is close
to the zero line. The market breadth was positive with
736 advances and 544 declines on the NSE and 1,519
advances and 1,321 declines on the BSE.
On hourly chart, Nifty is trading above its 20 hourly moving
average (HMA) and 40 HMA at 5001 and 5027 respectively,
which are now supports in the short term. The momentum
indicator (KST) has given positive crossover and is trading
close to the zero line.
Nifty and Sensex ended in green gaining 63 and 236 points
each. Of the 30 stocks of Sensex, Hindalco Industries (up
3.47%) and ACC (up 4.55%) were the top gainers, while
Bharti Airtel (down 1.40 %) and Reliance Infrastructure
(down 0.62%) were the top losers.