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Markets on August 11, 2011: Resistance @ 5197

The bounce that the Nifty witnessed in the last two days seems to be over with it facing resistance around its 40 h o u r  mo v i n g   a v e r a g e   ( HMA )   o f   5 1 9 1 .   I t   h a s   s t a r t e d slipping down again; it is expected to slide down for the next leg targeting 4950 in the short term. T h e   N i f t y   o p e n e d   o n   a   n e g a t i v e   n o t e   a n d   w a s consolidating throughout the day before closing the day in the negative. It has broken the previous swing low of 5195, which is a very bearish sign for the market going forward. The momentum indicators on the daily chart continue to remain in a sell mode indicating weakness in the medium term.

On the hourly chart, the Nifty is trading below its 20 HMA and 40 HMA ie 5129 and 5191 respectively, which are its crucial levels in the immediate run. The hourly momentum indicators have given a positive crossover and are trading above the zero line. The market breadth was negative with 632 advances   to 818 declines on the NSE.

The Nifty ended in the negative with a loss of 23 points while the Sensex declined 71 points in today’s trading. Of the 30 stocks of the Sensex, Reliance Infrastructure (up 2.55%) and HDFC (up 2.49%) were among the highest gainers while Tata Power (down 4.60%) and Maruti Suzuki (down 2.99%) were among the highest losers.