Choppy session Retracing previous rise

Markets started the day on a positive note on the back of
positive global cues. They remained volatile and the
indices oscillated around the previous close all through
the day. At the end of the session, bears won the tug of
war due to which the market ended in the red. On the
hourly chart, Nifty has given a negative crossover of 20-
hourly simple moving average (HSMA) and 40-hourly
exponential moving average (HEMA). However on account
of positive momentum cycle on the daily chart the negative
crossover of 20-HSMA and 40-HEMA will not have a strong
impact and the negative crossover is expected to violate
in the coming sessions. Further Nifty is expected to take
support around 61.8 % retracement level (of the rise from
2,252 to 3,240) at 2,650. On the daily chart, the
momentum indicator KST is still riding its positive
crossover. Market breadth that was dominated by the bulls
slipped under the command of bears at the end of the
session, which is sign of concern.


On the hourly chart, the momentum indicator KST is about
to give a positive crossover. Our short-term bias is revised
up for the target of 3,000 with reversal placed at 2,650.
Our mid-term bias is also still up for the target of 3,450
with reversal placed at 2,650.


All the 13 sectoral indices of the BSE except BSE FMCG
ended in the red with BSE CG, BSE Auto and BSE Metal
leading the fall. Among the 30 stocks of the Sensex, Bharti
Airtel (up 4%) and Reliance Communications (up 3%) led
the pack of gainers. While Tata Motors (down 9%), ACC
(down 9%) and Tata Steel (down 6%) led the pack of losers.