Markets on July 14, 2009:

Amidst the feeble Asian cues Indian markets started with a frail start. After the morning
slide markets just kept sideways in the midst of volatile session all through the day. After
the closing Sensex and Nifty were down by 103 and 29 points respectively. The midcap
and the smallcap indices were also down by 2.8 and 3.3 respectively. On daily chart, after
today’s negative close we will see an extension in the current rally. On hourly chart, the
channelised move is still intact, which is in the corner of the bears. Furthermore there is a
bearish flag on hourly chart, which is a continuation pattern, on account of which we may
see a further slide. Daily momentum oscillator is still in the corner of the bears. The
overall decline to advance ratio stood at 4 to 1 on the NSE.

Hourly momentum cycle has not yet turned positive, however the gap between the KST
line and the signal line has started shrinking. Our short-and mid-term biases are down for
the target of 3850 and 3800 with reversal packed at 4130 and 4500 respectively.

Barring stocks from the IT sector, selling activity was witnessed across the board with the
pack led by stocks from Consumer Durables, Realty and Metal spaces. From the 30
stocks of Sensex Sun Pharmaceuticals (up 3%) and Infosys (up 2%) led the pack of
gainers, while Reliance Infra (down 6%), Jaiprakash Associates (down 5%) and Tata
Steel (down 4%) led the pack of losers.