Markets on April 22: Resistance around 3360

Though ending the day in the red, the Indian stock market pared some of the losses during the final trade hour, due to buying at lower lev...

Though ending the day in the red, the Indian stock market pared some of the losses during the final trade hour, due to buying at lower levels. The Sensex closed 80 points down, while Nifty closed 35 points lower. Stocks from midcap and small-cap spaces also ended the day in the red.Even after three consecutive closes below 200-daily exponential moving average (DEMA), sellers are not able to gain the command. Also, on the hourly chart, 23.6% retracement level (of the rise from 2539 up to the high of 3511) is still intact. So, if that is breached, the current fall may extend further. Further, till the hourly falling channel is intact, bears are safe. In the upper zone, Nifty will face hurdle around 3360, which is 40-hourly exponential moving average (HEMA). The daily KST is still in the negative mode. Bears dominated the market breadth with 765 declines and 448 advances.

On the hourly chart, the momentum oscillator KST has formed a double bottom, but has not yet given any sign of reversal. Our short-term bias is down for the target of 3150 with the reversal pegged at 3550. However, our midterm bias is up for the target of 3650 with the reversal nailed at 3050.

Barring fast moving consumer goods and information technology stocks, selling was witnessed in stocks across the sectors, with realty and capital goods’ stocks leading the flock. From the 30 stocks of Sensex, ACC (up 5%) and Wipro (up 2%) led the pack of gainers. However, Maruti Suzuki India (down 4%), DLF (down 4%) and Sterlite industries (down 4%) led the clutch of losers.