Positive weekly close

The market on friday opened with a gap up--the Sensex was
up 300 points and Nifty was 100 points higher at opening
bell. The market kept consolidating all through the day
and at the end of the trading session, the Sensex and
Nifty closed at their day’s high, posting gains of 743 points
and 188 points respectively. The momentum indicator on
the daily charts has given a positive crossover but trading
below the zero line. The 20- and 40-day moving averages
are at 10,500 and 11,600 respectively on the Sensex,
which are strong resistances on the upside. Good support
levels exist around 9,400 and 9,000. The market breadth
was positive. NSE witnessed 854 advances and 364
declines whereas BSE saw 1,594 advances and 926
declines. Our short-term bias is up with reversal at 8,594
and target at 10,500.
On the hourly chart, an inverted head & shoulders pattern
has been formed with a neckline at 2,920 and target at
3,600. The momentum indicator, KST, has a positive
crossover and trading above the zero line.
The Sensex and Nifty ended the day with gains of 743 and
188 points respectively. Of the 30 stocks of the Sensex,
Reliance Industries (up 14%) and Tata Steel (up 14%) were
the top gainers, while Suzlon Energy was down by 3.4%.
Power sector has gained upside momentum.