Bulls bleed with Dismal close

The markets started the day on a weak note. They remained volatile in the subsequent hours of trade. The indices oscillated around the previous close till the afternoon session. While in the penultimate hour of trade, the markets tanked and broke the swing low of 2,860, which was a good support for the markets. Finally the market ended in the red with some range-bound movement in the final hour of trade. On the hourly chart, Nifty has broken the neckline of the head-and-shoulders pattern,so now the probable target for head-and-shoulders comes at 2,700. The hourly momentum is also in the favour of this head-and-shoulders pattern. Further, on the daily chart of the Sensex, we are having a good support of a previous bullish gap in the range of 9,361 and 9,297 (corresponding levels for Nifty is placed at 2,696). On the daily chart, though the momentum indicator KST is still in the buy mode, the gap between the indicator line and the signal line is shrinking. Bears dominated the market breadth with 891 declines and 312 advances.

On the hourly chart, the momentum indicator KST is riding its negative crossover and has breached the zero line. Our short-term bias is still down for the target of 2,745 with reversal placed at 2,975. However our midterm bias is still up for the target of 3,450 with reversal pegged at 2,650.

All the 13 sectors of the BSE ended in the red with the realty, metal and banking indices leading the fall. Among the 30 stocks of the Sensex only IT stocks were spared with Wipro, Tata Consultancy Services and Infosys Technologies ending in the green. On the other side Jaiprakash Associates, DLF and ICICI Bank led the packof losing stocks.