Bulls Vs Bears Neck to neck

Nifty opened in green and traded in a very narrow range
of 5030-5080. Today, Nifty finally managed to surpass 5050
level, which is 78.6% retracement of the fall from 5182 to
4538, but has just closed near it, which is a dicy signal
going ahead. Above 5050 levels, gates are now open for
our short-term target of 5150. The daily oscillator has
given positive signal, which is good sign in the near term,
but it is trading below the zero reference line, which is
the only concern in the medium term. The volume remains
average throughout the rally. So, a convincing close above
78.6% retracement level will only help Nifty to gain further
strength. Till then 4940 and 4860 remain crucial supports
on lower side.
On daily chart, Nifty is trading above its 20 daily moving
average (DMA) and 40DMA at 4901 and 4956 respectively,
which are now supports in the near term. The momentum
indicator (KST) has given positive crossover and is around
the zero line. The market breadth was positive with 837
advances and 439 declines on the NSE and 1,780 advances
and 1,142 declines on the BSE.
On hourly chart, Nifty is trading above its 20 hourly moving
average (HMA) and 40HMA at 5011 and 4891 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 Sensex gained 59 and 184 points each. Of the
30 stocks of Sensex, Maruti Suzuki India (up 5.45%) and
Reliance Communications (up 3.05%) were the top
performers while Tata Consultancy Services (down 0.63%)
was the weak performer.