Buying during final hours further strengthened the gains in the Indian indices, as they closed well above Friday’s closings. The Sensex ended 215 points higher, while Nifty ended 81 points up. Mid caps and small caps spaces also ended the day on strong note with the BSE MIDCAP and BSE SMLCAP recording gains of 2.9% and 3.5% respectively.The move in Nifty does not seem to be halting.Additionally, this northward move is supported by positive crossover of hourly moving averages. On the other hand,
the hourly momentum oscillator has given a negative crossover with negative divergence, which signifies that the current surge is losing strength. Probably, in the coming session, we may see some action in southward direction. Market breadth was positive with 997 advances and 268 declines on the NSE.
Our short-term bias is down for the target of 3900 with the reversal pegged at 4510. However, our mid-term bias is up for the target of 4550 with reversal placed at 3700. Except some banking stocks, all other counters witnessed growth with realty, metal and information technology leading from the front. From the 30 stocks of the Sensex, Tata Steel (up 8%), Sterlite Industries (up 7%) and ACC (up 6%) led the pack of gainers, while ICICI bank (down 2%), Bharat Heavy Electricals Ltd (down 2%) and Bharti Airtel (down 2%) were hit the worst.