Markets on February 27: Final hour recovery

Domestic markets managed to pare a good extend of losses, it suffered due to weaker-than-expected Q3FY2009 GDP figures and weak rupee, in ...

Domestic markets managed to pare a good extend of losses, it suffered due to weaker-than-expected Q3FY2009 GDP figures and weak rupee, in late hours but still ended the session in the red. The 30-stock Sensex ended 63 points lower, while Nifty was 22 points down. Mid-cap and small-cap indices also ended the day on a weak note. On hourly chart, Nifty is equipoise, as the inverted head and shoulders pattern and the triangular consolidation both are valid till date. Either side breakout will confirm the next move. In case of inverted head and shoulders pattern, the breakout will occur above 2798. However in case of triangle downside, the breakout will get confirmed on the breach of 2708. Bears dominated the market breadth with 644 declines and 508 advances.

Hourly momentum oscillator KST has ended with a negative crossover at the end of the day. Our short-term bias is up for the target of 2865 with reversal nailed at 2705. However our mid-term bias is still down for the target of 2450 with reversal pegged at 3111.

Banking and metal stock led the pack of gainers, while energy and realty scrips led the pack of losers. From the 30 stocks of Sensex, Tata Steel (up 6%), HDFC (up 5%) and HDFC Bank (up 1%) led the pack of gainers, whereas Grasim Industries (down 6%), Ranbaxy Laboratories (down 5%) and Wipro (down 4%) led the pack of losers.