The domestic stock market continued its upward surge,as buying intensified during the final trading hour. Sensex closed 193 points up, while Nifty closed higher by 39 points. Stocks from mid-cap and small-cap space also ended the day in the green. On the daily chart, the breakout of the previous inside bar has occurred in northward direction, which indicates that bulls will dominate in the coming session and the probability of crossing the high of 3123 has increased substantially. Also,the hourly chart suggests the same for the reason that the bearish trend line has been violated and markets has also cleared the previous swing high of 3054. Thus, the probability of head and shoulders pattern getting futile is very high. The daily momentum oscillator KST is still positive. Bulls dominated the market breadth with 945 advances and 259 declines.
The hourly KST though has given a positive crossover has not yet cleared the bearish trend line. Our short- and midterm biases are up for the target of 3150 and 3200 respectively with the short- and mid-term reversal pegged at 2960 and 2738 respectively.
Buying was seen across the sectors with realty, information technology and energy at forefront. However, healthcare and fast moving consumer goods stocks saw some profit booking. From the 30 stocks of Sensex, Ranbaxy Laboratories (up 8%), HDFC (up 7%) and Reliance Infrastructure (up 7%) led the pack of gainers. However, Sun Pharmaceutical Industries (down 4%), Bharat Heavy Electricals Ltd (down 2%) and Grasim Industries (down 2%) led the pack of losers.