Bulls out of woods with Firm close

Indian markets started the day on a negative note taking
lead from global markets. The benchmark indices
oscillated within a small range until noon. After noon, the
markets blasted out and closed in the green with handsome
gains. On daily chart, Nifty has taken support at 38.2%
retracement level (of the move from 2,252-3,240).
Further this support was backed by positive daily and
weekly closes, which is a good sign for the markets. The
daily momentum KST also points towards a good northward
rally in the coming sessions. So the gist of the story is
that bears should become cautious. The overall market
breadth also turned from red to green as the day
progressed.


On hourly chart, the momentum indicator KST has given
a positive crossover. Also Nifty has given close above both
20 and 40 hourly moving averages. Our short-term bias
is revised up for the target of 3,200 with reversal pegged
at 2,855. However our mid-term bias is still up for the
target of 3,450 with reversal nailed at 2,650.


All the 13 sectors of Sensex ended in the green with power,
oil & gas and metal sectors leading the rally. Among the
30 stocks of Sensex, leaving Mahindra & Mahindra all other
stocks ended in the green with Reliance Infrastructure,
Hindalco Industries and Reliance Communications
emerging as the chief gainers.