Mirroring global markets Sensex started the day with an upside gap, but remained range bound till noon. Thereafter, it gained momentum on the back of persistent buying to close well in the green. Sensex closed 298 points higher, while Nifty closed 76 points up. Stocks from midcap and small-cap indices ended in the green. On the daily chart, Nifty gave a positive breakout froman inverted head and shoulders pattern, whose conservative target is pegged at 3000.Nifty has also closed above the 40- daily simple moving average. The hourly chart shows that the bullish channel of Nifty is still intact, which indicates that currently bulls are on safer side. Daily KST is diverging away from thesignal line and has also broken above the zero line. Bulls dominated the market breadth with 802 advances and 392 declines.
On the hourly chart, the momentum indicator KST is still riding its positive crossover. Ourshort-term bias is revisedup for the target of 3000 with reversal at 2,752. However, our mid-termbias is still down for the target of 2450 with reversal pegged at 3111.
Stocks from metal, energy and capital goods sectors led the pack of gainers, while stocks from fast moving consumer goods and information technology sectors remained less in favour. From the 30 stocks of Sensex, Jaiprakash Associates (up 9%), Tata Steel (up 7%) and Reliance Infrastructure (up 7%) led the pack of gainers. On the other hand, Hindustan Unilever (down 0.5%) was the only loser in today’s session.