Pullback nearing end Strong resistance at 4860

Nifty traded quite volatile in the first half but finally closed
up continuing the pullback, which started yesterday. On
the upside, Nifty has a resistance at 4810 and 4860 and
this pullback should end around these levels after which
the next round down will resume. The momentum
indicators continue to be in sell mode, which also signals
weakness going forward. So in nutshell this rally should
be taken as a selling opportunity around current levels
eyeing for Nifty below 4500 which is also our short term
target.
On the daily chart, Nifty is trading below its 20 daily
moving average (DMA) and 40 DMA at 4938 and 4930
respectively, which are resistances in the near term. The
momentum indicator (KST) has given negative crossover
and is below the zero line. The market breadth was
positive with 951 advances and 322 declines on the NSE
and 1,872 advances and 929 declines on the BSE.
On the hourly chart, Nifty is trading above its 20 hourly
moving average (HMA) and 40HMA at 4670 and 4743
respectively, which are now resistances in the short term.
The momentum indicator (KST) has given positive
crossover and is trading below the zero line.
Nifty and the Sensex gained 55 and 152 points each. Of
the 30 stocks of the Sensex Reliance Communications (up
5.34%) and Reliance Energy (up 5.59%) were the top
gainers while State Bank of India (down 1.14%) and Gujarat
Ambuja (down 3.33%) were the top losers.