>EAGLE EYE ON 10/09/09 (SHAREKHAN)

VOLATILE DAY

Markets on Sep 09, 2009: Triangle consolidation

After a seesaw session Nifty managed to close marginally positive today. The index has closed positive above 4750 for the third day in row, which is a positive sign going forward. However, the breadth was negative, which signaled some selling pressure around 4850. The market continues to hold its support at 20 hourly moving average (HMA), 40HMA and the upper band of the bullish Island i.e. 15275, which are key supports going forward. So till these levels are held by the market our short-term bias remains up for the target of 5000 and reversal down below
4575.

On the daily chart, Nifty is trading above its 20 daily moving average (DMA) and 40DMA i.e. 4619 and 4555 respectively, which are crucial supports going forward. The momentum indicator (KST) had given positive crossover and is trading above the zero line. The market breadth was negative with 511 advances and 750 declines on the NSE and 1,329 advances and 1,550 declines on the BSE.

On the hourly chart, Nifty is trading above its 20HMA and 40HMA i.e. 4778 and 4740 respectively, which are crucial supports in the short term. The momentum indicator (KST) has given negative crossover and is trading above the zero line.

To see full report: EAGLE EYE 100909