Markets on July 24, 2009: Surge continues (Momentum turns positive)

Taking lead from healthy global cues, the stock market,back home, opened on a positive note. Consolidating in the initial two hours it ral...

Taking lead from healthy global cues, the stock market,back home, opened on a positive note. Consolidating in the initial two hours it rallied to end the day on a positive note. The Sensex added 147 points to its kitty, while Nifty closed 44 points up. Mid caps and small caps also did well with the BSE MIDCAP, the mid cap index, and the BSE SMLCAP, the small cap index, ending 1.67% and 1.81% higher respectively. On the hourly chart, Nifty has not yet violated the series of higher highs and higher lows.Further, according to wave theory, the upward targets of Nifty are still pending. This indicates that buying on dips should the strategy for the coming sessions. The daily momentum oscillator KST is amplifying northward. The advance to decline ratio on the NSE stood at 2.4 to 1.

We are revising our short-term bias for the target of 4615 with the trend expected to revere at 4380. Our mid-term bias is still up for the target of 5000 with the trend reversal at 4200.

Only the banking sector was down today. All other sectors were up for the day with auto, realty and metal sectors making the most. From the 30 stocks that make the Sensex, Tata Motors (up 10%), DLF (up 6%) and Maruti Suzuki (up 6%) posted maximum gains, while Bharti Airtel and Sun Pharmaceutical (down 2%) were hit the mo