Though the domestic stock market began the day on a shaky note and made a sharp dip in afternoon session, it ended the day on a healthy note. Sensex was 196 points up on the closing bell and Nifty ended 45 points up. Midcap and small-cap indices were also up for the day. On daily chart, Nifty ended the day with a positive bias, which indicates that the breakout of the upper boundary of the triangle will be witnessed in the coming sessions. On hourly chart, the bullish trend line of Nifty is still intact. Further, the pennant (a continuation pattern), which was under formation has given an upside breakout, which indicates that the high of 3017 will be cleared in the coming session. Also, the conservative target of inverted head and shoulders pattern, which is nailed at 3100, is still on the cards. Daily KST, which is in the buy mode, is still undisturbed. Market breadth was in the favour of bulls with 638 advances and 544 declines.
Hourly KST has turned upside, though it has not given a positive crossover. Our short-term bias is up for the target of 3050 with reversal pegged at 2815. We are also revising our mid-term bias for the target of 3200 with reversal pegged at 2738.
Buying activity was witnessed in stocks across sectors, with realty and energy leading the pack of gainers. However, stocks from healthcare and auto space remained the lowest gainers. From the 30 stocks of Sensex, Jaiprakash Associates (up 8%), Tata Power (up 7%) and Sterlite industries (up 6%) led the pack of gainers. However, NTPC (down 3%) and Bharti Airtel (down 2%) led the pack of losers.