The domestic stock market recorded another strong day defying fears of unwinding on expiry of May series today. Metal and realty scrips gained while pharmaceutical and information technology stocks fell. On the hourly chart, Nifty has completed 61.8% retracement level (pegged at 4350) of the previous fall. So, currently, Nifty is at a crucial juncture. If Nifty fails to hold the rising channel, we will see a brisk fall. Further, the negative crossover of the hourly averages also favours the bearish scenario. The daily momentum indicator KST is still in sell mode even after today’s surge. The market breadth was almost neutral with 697 advances and 559 declines on the NSE.

The hourly KST has turned flat and is motionless after today’s close. Our short-term bias is down for the target of 3900 and the trend could reverse if Nifty crosses 4510.Our mid-term bias is up for the target of 4550 and the trend is expected to reverse at 3700.

The Sensex and the Nifty closed with gains of 186 points (up 1.32%) and 61 points (1.43%) respectively. The BSE MIDCAP and BSE SMLCAP were also up by 0.78% and 0.24% respectively. From the 30 stocks of the Sensex, Ranbaxy Laboratories (up 4%), Sterlite Industries (up 4%) and Bharti Airtel (up 3%) topped the list of gaining stocks, while Tata Motors (down 3%), Grasim Industries (down 3%) and Wipro (down 3%) posted maximum losses for the day.

(Disclaimer: The above chart shown is for study purpose only and not for trading decision)

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