>Eagle Eye (SHAREKHAN)

The final trading hour witnessed considerable volatility, as alternate bouts of buying and selling led the Indian indices to hover around 2800. BSE Sensex closed 29 points down and NSE’s Nifty ended flat. Stocks from mid-cap space ended lower. However, small-cap stocks remained in the limelight and closed higher. Daily chart of Nifty indicates one more day of indecision or consolidation by its second inside bar. On hourly chart, Nifty is forming a descending triangle, which generally breaks on the downside as per the definition. During the course of the day, the last hour rally was just a throw-over (bullish trap) and not a genuine breakout, and in the coming session Nifty will witness a downside breakout from the descending triangle. After long time, the market breadth was in favour of bears with 594 declines and 591 advances.

Hourly KST is still tilted in favour of bears. Our short- and mid-term biases are down for the target of 2630 and 2450 respectively and the short- and mid-term reversals pegged at 2840 and 3111 respectively.

Metal and fast moving consumer goods (FMCG) sectors posted gains for the day, whereas realty and capital goods sectors reported losses. From the 30 stocks of Sensex, Hindalco Industries (up 6%) and ONGC (up 3%) led the clutch of gainers and Tata Motors (down 6%) and ICICI Bank (down 5%) led the drove of losers.

To see full report: EAGLE EYE 230309