Resistance at 5050 held and Rising wedge broken

Nifty finally could not sustain above 5050 despite several
attempts by the bulls and the bears were successful in
dragging it below 5000. The downturn has resumed exactly
from 78.6% retracement of the fall from 5182 to 4538,
which signals that the pullback of the fall is almost over.
This will be confirmed once we get a weekly negative
close. The index was moving up with an absolute negative
divergence between prices and volumes, with prices and
oscillators giving an early sign of weakening momentum
and limited upside. However, on the lower side 16370 on
Sensex and 4860 on Nifty are crucial supports.
On daily chart, Nifty is trading above its 20 daily moving
average (DMA) and 40DMA at 4890 and 4964 respectively,
which are now the supports in the near term. Momentum
indicator KST has given positive crossover and is close to
the zero line. The market breadth was negative with 386
advances and 877 declines on NSE and 1,131 advances
and 1,740 declines on BSE.
On hourly chart, Nifty is trading above its 20 hourly moving
average (HMA) and 40 HMA at 5040 and 5021 respectively,
which are now the resistances in the short term.
Momentum indicator KST has given negative crossover
and is trading below the zero line.
Nifty and Sensex ended in red losing 66 and 213 points
respectively. Of the 30 stocks of Sensex, ACC (up 0.41%)
and HDFC (up 0.44%) were the top gainers while Hindalco
Industries (down 3.46 %) and Reliance Infra (down 3.90%)
were the top losers.