Markets on March 16: Resistance zone at 2750–2800 (Bullish crossover of hourly averages)

Persistent buying led the domestic indices continue their upward journey right till the final trading hour. Sensex finally closed 186 poin...

Persistent buying led the domestic indices continue their upward journey right till the final trading hour. Sensex finally closed 186 points higher and Nifty ended 58 points up. Mid-cap and small-cap indices also ended on a firm note. On daily chart, apart from puncturing the bearish trend line, Nifty has also cleared the hurdle of 20-daily simple moving average (20-DSMA) and 40-daily exponential moving average (40-DEMA). On hourly chart,Nifty is forming a rising wedge, and the moment the lower boundary of the wedge is violated a small dip is probable.Further, in the zone of 2750-2800, good supply has been witnessed in the past, which indicates that until 2800 gets cleared Nifty will face resistance in the upper zone. Again, today on hourly charts, we have a bullish crossover of hourly moving averages, which is a healthy sign for the market. Momentum oscillator KST is smartly managing its up-trend. Bulls dominated the market breadth with 879 advances and 326 declines.

Hourly momentum is still positive, as KST has not yet given a negative crossover. Our short-term bias is up for the target of 2830 with reversal pegged at 2530. However, our mid-term bias is still at 2450 with reversal nailed at 3111.

Buying was witnessed across all sectors, with stocks from realty and energy space leading the pack. From the 30 stocks of Sensex, Jaiprakash Associates (up 9%) and Mahindra & Mahindra (up 9%) led the bunch of gainers,whereas Sun Pharmaceutical Industries (down 2%) and Maruti Suzuki India (down 2%) led the clutch of losers.