Rising channel disrupted

Markets on March 18: Shooting Star

The Indian markets shed a part of their gains during the final hour of trade on the back of
profit booking. On the other hand, markets ended the day on a healthy note. The Sensex
and Nifty closed higher by 40 points. Stocks from the mid-cap and small-cap indices
ended the day in the green as well. On daily candlestick chart, Sensex has formed a
Shooting Star, which indicates that the current rally is aborted and we may see a small
dip. Further Nifty has reacted form the upper boundary of the falling channel and did not
succeed in clearing that boundary. On hourly chart, Nifty has broken the rising channel
after the negative divergence. Only the sign favoring the bulls was the market breadth,
which was positive with 845 advances and 362 declines.

Hourly momentum cycle KST is still driving its negative crossover. Our short- and mid-
term biases are down for the target of 2630 and 2450 with reversal packed at 2840 and
3111.

Buying activity was witnessed in stocks across sectors, with realty and metal leading the
pack of gainers. However, the BSE-FMCG Index ended the day in the red. From the 30
stocks of Sensex DLF (up 8%) and Jaiprakash Associates (up 6%) led the pack of
gainers. However M & M (down 4%) and Tata power (down 2%) led the pack of losers.