Support zone: – 4567-4546

Markets on August 25, 2009: IT and Energy outperform

Market witnessed a choppy session as both bulls and bears were active throughout the
day trying to keep the ball in their court. However finally bulls won the game with a gain
of 16 points on Nifty and 59 points on Sensex. Today’s move is suggestive of no real
buying pressure. Additionally hourly momentum oscillator KST has slipped into sell
mode, which indicates that in coming session we may witness a dip, which should end
near the support area of 4567-4546 (i.e. 20 and 40-hourly moving averages). Daily KST
continue to ride its positive crossover, which indicates that the overall view still remains
bullish. Bulls’ with 739 advances and 511 declines dominated the market breadth.

Our short-term bias is up for the target of 4780 with reversal packed at 4350. However
our mid-term bias is still down for the target of 4230 with reversal packed at 4620.

BSE-Midcap and BSE-Smallcap indices gained by 0.5% and 1.5% respectively. Buying
activity was witnessed across sectors, with IT, Consumer durables and Oil&Gas leading
the pack of gainers. From the 30 stocks of Sensex Tata Motors (up 7%), Wipro (up 4%)
and Reliance (up 3%) led the pack of gainers. However State Bank of India (down 2%)
and BHEL (down 2%) led the pack of losers.