Markets on May 27: Rally across the board

Flying start with an excellent finishing. This aptly sums up the trading at the markets today. The Sensex ended 520 points up, while Nifty...

Flying start with an excellent finishing. This aptly sums up the trading at the markets today. The Sensex ended 520 points up, while Nifty closed added 159 points. Mid caps and small caps also ended the day on a strong note,with the BSE MIDCAP and BSE SMLCAP recording gains of 3.67% and 3.37% respectively. On hourly chart, Nifty is merely retracing its previous fall from the top of 4509. As per retracement theory, the current spurt will end around 4350, which is 61.8% of the entire fall from 4509. Daily momentum indicator KST is still in sell mode. Bulls with 1,090 advances and 1,73 declines dominated the market breadth on the NSE.

On the back of massive buying interest, momentum oscillator KST has given a positive crossover. Our shortterm bias is down for the target of 3900 with trend reversal pegged at 4510. However, our mid-term bias is up for the target of 4550 with trend reversal placed at 3700.

Buying was witnessed in stocks across sectors led by realty,banking and power. However stocks from the healthcare and FMCG spaces were less in favor. From the 30 stocks of Sensex Reliance Infrastructure (up 15%), Sterlite Industries (up 9%) and ONGC (up 9%) led the pack of gainers, while Bharti Airtel, ITC and ACC led the pack of losers.