After a flat opening the domestic indices slid in the red.However after morning session, markets gainedmomentum, as buying activity intensified. During the final hour of the trade the markets managed to rise above the previous close and end the day on a positive note. Sensex closed 52 points up, whereas Nifty closed 23 points up. Midcap index ended higher while small cap stocks finished on a weak note. Nifty on daily chart continued its positive close for the second consecutive day. Further, on the daily chart, Nifty can take a breather near 20- and 40-daily moving average. On hourly chart, Nifty has cleared the neckline of inverted head and shoulders pattern. So, in the coming session we can see Nifty amplifying up to the conservative target of 2850. Bears dominated the market breadth with 710 declines and 444 advances.
On hourly chart, momentum oscillator KST has given a positive crossover, which is supporting today’s bullish breakout of inverted head and shoulders pattern. Our short-term bias is up for the target of 2865 with reversal nailed at 2705. However, our mid-term bias is still down for the target of 2450 with reversal pegged at 3111.
Auto and oil & gas stocks topped the list of gaining stocks for the day, whereas banking and realty led the pack of losing scrips. From the 30 stocks of Sensex Tata Motors (up 7%), Maruti Suzuki India (up 5%) and Grasim Industries (up 4%) led the pack of gainers, while Ranbaxy Laboratories (down 18%) and ICICI Bank (down 5%) led the pack of losers.