>HIGH NOON (SHAREKHAN)

FADING MOMENTUM

The Nifty continues to move up after a sharp pullback at the start of the week. Though the upmove is not supported by the momentum indicators, which continue to make lower highs and lower lows, thereby giving a negative divergence signal between the price and the momentum.
The Nifty managed to surpass the high of 5110. Going forward, 5150 is the next crucial resistance on the upside, so till that is crossed we expect the Nifty to face selling pressure at this level.

On the hourly charts, the KST momentum indicator has a given a negative crossover and is trading below the zero line. The Nifty is trading above the 20-HMA and 40-HMA, ie 5008 and 5012 respectively, which are supports in the short run. The market breadth is positive with 926 Of the 30 stocks of the Sensex Gujarat Ambuja (down 3.52%) and RCom (down 4.08%) are the top losers while Tata Motors (up 3.69%) and Hindalco (up 3.10%) are the top gainers. advances and 308 declines.

To see full report: HIGH NOON