Markets on May 11: Back-to-back losses (Support at 3517)

The Indian stock market witnessed second consecutive session of profit booking today, with the Sensex closing 193 points lower, while Nift...

The Indian stock market witnessed second consecutive session of profit booking today, with the Sensex closing 193 points lower, while Nifty posted losses of 66 points.Stocks from mid-cap and small-cap space also ended lower by 1.56% and 2.15% respectively. The daily chart depicts that Nifty is near the good support of 3517 and till this is not violated, Nifty holds a chance to cross 3700 on upside.But if 3517 is breached, the probability of markets sliding up to 3300 will increase. On upside, if the hurdle of hourly average gets disrupted, it will be an additional upward push for the market in the coming session. The daily momentum oscillator KST is still in sell mode. Bears dominated the markets breadth with 1,587 declines and 914 advances.

The hourly momentum cycle is still in favour of bears.Our short-term bias is still down for the target of 3525 with the reversal packed at 3715. Our mid-term bias is still up for the target of 3750 with the reversal placed at 3515.

Selling activity was witnessed in stocks across sectors with realty, capital goods and metal hit the worst. From the 30 stocks of the Sensex, Mahindra & Mahindra (up 2%) and ICICI Bank (up 0.5%) led the pack of gainers while losing streak was piloted by DLF (down 5%), State Bank of India (down 5%) and Reliance Communications (down 5%).