Consistent buying along the day led the stock market end the week on a strong note. The Sensex ended 419 points up, while Nifty closed 133 points higher. Mid caps and small caps also ended the day on a positive note, with the BSE MIPCAP and the BSE SMLCAP ending 2.4% and 1.9% up respectively. Nifty, after taking the support at 61.8% retracement level (ie 4221), surged skywards clearing both the 20- and the 40-hourly averages. The inverted head and shoulders pattern on intraday chart also saw a breakout above the neckline and the target for Nifty comes around 4425. The overall advance to decline ratio on the NSE was positive with 873 advances and only 367 declines.
For short term we maintain an upside bias with a target of 4450 and the reversal pegged at 4100. However, our mid-term bias is down for the target of 3870 with the reversal placed at 4700.
Banking, consumer goods and information technology stocks saw buying, while health care counter ended on a negative note. Of the 30 Sensex stocks, ICICI Bank (up 8%), Sterlite Industries (up 6%) and Larsen & Toubro (up 5%) gained the most, whereas Ranbaxy Laboratories (down 4%) and Tata Steel (down 3%) were hit the worst for the day.