Starting on a positive note, there was no looking back for the market with buying continuing right till the final minutes. The Sensex, the 30-stock index of the BSE, ended 401 points up and Nifty, the 50-stock index of the NSE,closed 111 points higher. Mid caps and small caps also did well for the day with the BSE MIDCAP and the BSE SMLCAP ending 2% and 1.3% higher respectively. Today’s move on Nifty was phenomenal, as bulls piloted the rally without a single pullback. On the hourly chart, Nifty is trading within a triangular consolidation due to which hourly averages are getting whipsawed. So, until there is a clear-cut breakout on either side, the market is expected to trade within a range of 150 points. Bulls dominated the market breadth at the NSE with 741 advances and 460 declines.

On the hourly chart, momentum oscillator KST has given a positive crossover, which is concerning for bears. We are revising down our short-term target to 3290 with reversal at 3520. However our mid-term bias is still up for the target of 3700 with reversal pegged at 3290.

Buying was seen across sectors with information technology, banking and energy stocks gaining the maximum. From the 30 stocks of the Sensex’ basket,ICICI Bank (up 9%), Jaiprakash Associates (up 7%) and Sterlite Industries (up 7%) and Tata Power (up 7) led the pack of gainers.

(Disclaimer : The above chart shown is for study purpose only and not for trading decision)

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