A higher open was sold off followed by demand returning again: that’s how the broader market panned out on the penultimate day of the week. Today’s price action does not send any continuation of reversal signal on its own but it has other implications.

For the past one year, prices have taken support/resistance several times from 100 DMA, and right now, prices again have returned to this important moving average at 11505 odd levels. Will this support hold this time? We do not know, but the first sign for that bullish case would be a close above 11625. Until that happens, weight of evidence will remain tilted towards bears.

Some beaten down stocks surged in today’s session eg Zee Entertainment, Tata Motors, Her Moto Corp etc. This stands as mere pull back & therefore it does not instill confidence in the bulls’ camp. We are expecting primary downtrend to resume soon in these scrips. Among outperformers though, we prefer HDFC to trade from long side (CMP: 2260) with stop at 2220 & target 2320.