Neckline Retest

Market has opened on positive note and Nifty has made a
high of 4,390. However, the early gains have been trimmed
due to selling pressure at higher levels. The previous swing
high, which was a good support, is also broken. So, the
next support for Nifty is at 40 HEMA (ie 4,328). We expect
the momentum to be volatile for the day. Market breadth
is positive with 727 advances and 390 declines. Daily KST
is moving up for a positive crossover. Our short-term bias
is still up for the target of 4,500 with the reversal nailed
at 4,270.

On the hourly charts, the momentum indicator KST is
lingering above the zero line with a positive crossover.
Going further, on intra-day charts Nifty is forming an
inverted head-and-shoulders pattern, which has been
breached for the target of 4,450.


Banking and construction sectors are gaining momentum.
Axis Bank looks good for the day. Unitech has a potential
for Rs180 in short term, as the stock is making a bullish
inverted head-and-shoulders pattern.