On the average front, the indices have dipped below the 10-day simple moving average. This indicates that the possibility of a further reaction cannot be ruled out.
On the oscillator front, the MACD line has entered a sell mode and the RSI line has moved down. This has bearish implications and hence, caution is advised in the market for the time being.
On the resistance front, the Nifty faces resistance at around 3610 level and the Sensex at around 12,500 level. For the indices to gain upward momentum they must stabilize above these resistance levels.
Technically, till such time the markets can be assumed to be in a corrective mode.
In the punter zone they have a buy on HLL and a sell on Grasim Industries. In the Technical call section they have a buy on ITI and Bajaj Auto and a Sell on Canara Bank.