Momentum turns down

Markets on August 14, 2009: A dull day

After a day of distribution Indian markets ended the day's trading session on a negative
note. Also persistent selling activity witnessed at higher levels throughout the day.
Today’s negative close marks the end of the pull-up and may be from Monday, bear will
take over the market. 20- and 40- hourly averages are packed at 4517 and 4539
respectively, below which the fall will gain momentum. Daily KST continue to maintain
its downward bias. The overall market breadth was almost neutral with 633 losers and
600 gainers.

Hourly KST has turned down with its negative crossover, which is weak sign for the
market. Our short-term bias is down for the target of 4325 with reversal packed at 4732.
However our mid-term bias is still up for the targets of 5000 with reversal packed at
4325.

Sensex ended the day lower by 106 points, while Nifty closed lower by 24 points. The
BSE-Midcap index also closed lower by 0.09%. However, the BSE-Smallcap index
closed higher by 0.40%. While selling activity was witnessed across sectors, stocks from
the energy sector showed some buying interest. From the 30 stocks of Sensex ONGC (up
5%) and Reliance Infra (up 1%) led the pack of gainers. However Jaiprakash Associates
(down 4%) and Hindustan Unilever (down 3%) led the pack of losers.