Markets rebound

Markets on June 9, 2009: Bulls fight back

The Indian markets made up for yesterday's losses as they ended the day on a strong note.
Sensex ended the day higher by around 461 points, while the Nifty closed higher by 121
points. Stocks from the mid-cap and small-cap spaces ended the day on a firm note as
well, recording gains of 3.15% and 1.67% respectively. On hourly chart Nifty is forming
an expanding triangle, which indicates that before showing new low markets might just
the kiss the previous high of 4636. Though the current rally will be just a sell on rise
story. Nifty has also cleared the hourly averages. Daily momentum cycle is still under the
command of bears. Bulls with 713 advances and 550 declines dominated market breadth.

Hourly momentum indicator KST has given a positive crossover. Our short-term bias is
down for the target of 4200 with reversal packed at 4640, while our mid-term bias is still
up for the targets of 4850 with reversal packed at 3861 respectively.

Buying activity was witnessed in stocks across sectors led by realty, IT and Metals.
From the 30 stocks of Sensex DLF (up 10%), Jaiprakash Associates (up 8%) and
Reliance Communication (up 7%) led the pack of gainers, while Grasim (down 0.5%)
and NTPC (down 0.5%) led the pack of losers.