Nifty 5050 level is crucial

The Nifty opened in the negative on weak global cues but
has taken support at the 61.8% retracement of the fall which
is 4940. On the upside 5050 remains a crucial resistance
that is 78.6% retracement of the fall from 5182 to 4538. In
yesterday’s session too, it had taken resistance around 5050
after which we had a sharp sell-off. So, in order to gain
more strength the Nifty needs to cross the 5050 level
convincingly. On the lower side, 4940 and 4850 remain nearterm
supports.
On the hourly charts, the KST momentum indicator has a
given a negative crossover and is trading above the zero
line and has given negative divergence. The Nifty is trading
above the 20-HMA and 40-HMA, ie 4949 and 4859
respectively, which are supports in the short run. The market
breadth is positive with 787 advances and 421 declines.

Of the 30 stocks of the Sensex, Maruti (up 2.37%) and TCS
(up 1.96 %) are the top gainers while ONGC (down 0.11%) is
the weak performer.