Up and away

The Sensex started the day 100 points higher and managed
to hold the opening gap all through the day. In the opening
session itself the Sensex made a low of 10,095, which
was never touched again during the day as the market
rallied without any intra-day dip. On daily chart, Nifty is
forming an inverted head-and-shoulders pattern, whose
neckline is placed at 3,241 and an upside breakout of this
neckline will take Nifty to 3,650 in the near future. Further,
the close of Nifty above the 20-day simple moving average
is adding to this bullish scenario until Nifty holds the
support of the moving average. Another encouraging sign
for the bulls is the daily momentum KST that is still surging
and has also breached the zero line. Bulls totally dominated
the market breadth with 913 advances and 309 declines.

The hourly momentum indicator is also getting stronger
in upward direction, which is a good sign for bulls. Our
short-and mid-term biases are up for the target of 3,200
and 3,450. We are placing our short- and mid-term reversal
at 2,855 and 2,650.

Today the Sensex and Nifty both ended with phenomenal
gains of 571 and 175 points respectively. All the 13 sectoral
indices of the BSE ended in green with the BSE Metal, BSE
Power and BSE capital goods leading the rally. Among the
30 stocks of Sensex Sterlite Industries, Tata Steel and
Tata Power were the chief gainers. However ITC and
Maruti Suzuki India were chief losers.