Markets on May 14: Quiet close

Though the market ended the day on a weak note, in the second half, it did manage to pare losses made in the first half. The Sensex closed...

Though the market ended the day on a weak note, in the second half, it did manage to pare losses made in the first half. The Sensex closed 146 points down and Nifty wrapped the session about 41 points down. However, mid caps and small caps ended 0.41% and 0.57% higher respectively. On the hourly chart, Nifty is trading sideways and until we get a decisive breakout on either side, market is expected to whipsaw around the hourly averages.Further, the support of 3517 is still valid. If we shift our attention towards the hourly momentum oscillator, it is alarming us with its negative divergence and negative crossover. So, the tug of war between the bulls and bears is going strong, and for further trigger on either side,wait for the trading range to get violated. Bears dominated the market breadth with 606 declines and 592 advances on the NSE.

Our short- and mid-term biases are up for the target of 3750 with the reversal placed at 3530 for short term and 3515 for medium term.

Profit booking was witnessed in stocks from energy and capital goods space, while buying was witnessed in realty and auto stocks. From the 30 stocks of Sensex, DLF (up 7%) and Ranbaxy Laboratories (up 4%) led the pack of gainers, while Sterlite Industries (down 5%), Bharti Airtel (down 4%) and Tata Motors (down 3%) led the pack of losers.