Tail-end recoverySupport at 2694

The markets started the day on a flat note, slid afterwards
and during afternoon session tanked further into the red.
Though the markets ended in the negative territory, they
managed to trim the losses on the back of buying at lower
levels during the final hours of trade. On the daily chart,
Nifty saw a tail-end recovery from 50% retracement level
(of the rise from 2,252 up to 3,240), which has still kept
the hopes alive in the bulls’ camp. Further, on the hourly
chart, if Nifty clears the hurdle of 20-hourly simple moving
average (HSMA) and 40-hourly exponential moving
average (HEMA) without breaching today’s low of 2,694,
the probability of Nifty going above the neckline of
inverted head and shoulders pattern will increase. On the
daily chart, the momentum indicator has not yet given
any bearish signal. The market breadth was the only sign
of concern as the losing stocks outnumbered the advancing
ones.


On the hourly chart, the momentum indicator KST has
given a positive crossover, which points towards a bullish
scenario in coming sessions. Our short- and mid-term
biases are up for the targets of 3,000 and 3,450
respectively with the short- and mid-term reversal pegged
at 2,650.


Of the 13 sectors of the BSE, except BSE IT, all other
sectors ended in the red with the BSE Realty, BSE Bankex
and BSE CD (consumer durables) leading the fall. Among
the 30 stocks of the Sensex, Wipro (up 5%), ACC (up 4%)
and Maruti Suzuki India (Up 2%) led the pack of gainers.
While HDFC Bank (down 9%) and Reliance Infrastructure
(down 7%) led the pack of losers.