After a weak opening, the indices, the Sensex and Nifty,rose steadily higher to close well in the green. The Sensex closed 356 points up and Nifty closed 101 points higher. Stocks from mid-cap and small-cap space also ended the day in the green. Today, Nifty closed above the 200-daily exponential moving average (200-DEMA) on a strong note, which is a healthy sign for the market. Also, the bearish trend line from the high 6357 has also been broken on a closing basis. On the hourly chart, Nifty took support at the 20-HSMA after the morning dip, and from there continued scaling new highs. On the downside, good support exists at 3415. The hourly momentum oscillator KST has violated the bearish trend line, which indicates that the current rally has not yet ended. The daily momentum oscillator KST is still riding its positive crossover. Bulls totally dominated the market breadth with 1,101 advances and only 163 declines.
The hourly KST has given a positive crossover. Both our short- and mid-term biases are revised up for the target of 3600. However, the short- and mid-term reversals are placed at 3400 and 3340 respectively.
Buying was witnessed across the sectors led by realty, capital goods and banking stocks. However, stocks from IT sector saw profit booking. From the 30 stocks of Sensex, Tata Motors (up 11%), DLF (up 10%) and Bharat Heavy Electricals Ltd (up 9%) led the pack of gainers. However, Infosys (down 3%) and Tata Consultancy Services (down 2%) led the pack of losers.