After opening positive the market consolidated in a very narrow range of 5020-4990 throughout the day. Nifty is trading in an upward parallel channel and taken support from the middle line of the channel i.e. 4900. The upper end resistance of the channel is 5100-5151, which is also our short-term target. Nifty is trading above 4750 level, which acted as strong resistance earlier and has now become an important support going forward. Sensex is trading above the bullish island reversal pattern i.e.15275, which will act as a very strong support in short run. Nifty is currently trading above 20 daily moving average (DMA) and 40DMA i.e. 4837 and 4728 respectively,which are crucial support levels going forward. The momentum indicator (KST) has given a negative crossover and trading above zero line.
On hourly chart, Nifty is trading above 20 hourly moving average (HMA) and 40HMA i.e. 4986 and 4966 respectively, which are crucial support levels in immediate run. Momentum indicator (KST) has given positive crossover and trading above zero line. Market breadth was positive with 734 advances and 537 declines on the NSE.
Nifty ended positive with 48 points and Sensex with 160 points. Of the 30 stocks of the Sensex, Sun Pharmaceutical Industries (up 5.5%) and Tata Consultancy Services (up 4%) were top gainers, while State Bank of India (down 2%) and Ranbaxy Laboratories (down 2%) were in red.Information technology sector stocks were trading with positive momentum and expected to move up.