Choppy session Inflated/deflated

The domestic indices opened on a weak note amidst
negative global cues and traded below the previous close
for larger part of the trading session. While in the
penultimate hour of trade, they managed to swing towards
the previous close led by intensified buying activity at
lower levels. However, this momentum was short-lived
as in the final trading hour the markets gave up all the
gains to close deep into the red. On hourly chart, Nifty is
trading within a falling channel and is expected to touch
the lower line of the channel placed at 2,775. On upper
end, Nifty is having resistances of 20 HSMA and 40 HEMA,
which are placed at 2,954 and 3,019 respectively. The
daily momentum indicator is trading sideways. The overall
market breadth was negative with the losers outnumbering
the gainers.


On hourly chart, the momentum indicator KST is still riding
its negative crossover and has also breached the zero
line. Our short-term bias is still down for the target of
2,750 with reversal packed at 3,250. However our midterm
bias is still up for the target of 3,450 with reversal
nailed at 2,650.


The Sensex and Nifty both ended with a loss of 385 and
102 points respectively. Among the 13 sectors of the
Sensex, realty and health care were the only sectors that
ended in the green, while all other sectors ended in the
red with metal and oil & gas sectors leading the party.
Among the 30 stocks of the Sensex Jaiprakash Associates
and Hindustan Unilever led the pack of gainers while Tata
Steel and Tata Motors led the bunch of losers.