Today Support @ 2846

Market today has opened gaped up. Nifty is now trading
above the 40 HMA i.e. 2846 levels, which is a strong
support. On the daily charts, the index has strong resistance
at 20 DMA and 40 DMA i.e. 3150 and 3990 respectively. We
expect momentum to be positive for the day. Market
breadth is positive with 1053 advances and 143 declines.
Daily momentum indicator has given a positive crossover.
On the daily charts, support at 2850 and strong resistance
at 3150.
On hourly charts, Nifty has Inverted Head & Shoulder, which
had it’s neckline at 2920 and has also broken out of the
pattern for the target of 3600, which is a strong sign going
forward. Support at 2900 and a very strong resistance at
3050 on hourly charts.
Of the 30 stocks of the Sensex, Reliance (up 4%) and
Punj Lloyd (up 9%) are the top gainers. TCS is likely to test
Rs520 on the downside and has strong resistance at Rs570.
Among the sectors, Metal sector have gained momentum,
and expected to move downward