Back to back gains

Markets on February 10: Support at 40-DEMA

The Indian markets began the day on a positive note amidst positive global cues, but
dropped below the previous close post noon on account of profit booking. However, they
managed to bounce back during the final hour of trade to end the day on a positive note.
Finally, Sensex and Nifty closed with gains of 63 and 14 points respectively. Stocks from
the mid-cap and small-cap indices ended marginally in the green. On daily chart, the rally
continued after a third consecutive daily close and there is no sign of worry until 40-days
exponential moving average (40-DEMA) is breached on closing basis. On hourly chart,
Nifty has broken the rising channel but until the wall of hourly averages is broken,
today’s down move can be witnessed as a small dip in the current up trend. Up trend of
daily KST is still intact. Market breadth was marginally in the favor the bulls with 651
advances and 523 declines.

On hourly chart, momentum indicator KST has given a negative crossover. Our short-
term bias is up for the target of 3000 with reversal packed at 2752. However our mid-
term bias is still down for the target of 2450 with reversal packed 3111.

Stocks from the realty, capital goods and healthcare spaces led the pack of gainers today,
while stocks from the metal and FMCG sectors led the pack of losers. From the 30 stocks
of Sensex DLF (up 9%), BHEL (up 4%) and Larsen & Toubro (up 3%) lead the pack of
gainers. On the other hand Reliance Infra (down 3%) and Hindalco (down 2%) lead the
pack of losers.