Markets on March 23: Hurdles cleared

The Indian stock market continued its surge, as buying was seen till the final minutes of trade. As a result, Sensex closed 457 points up...

The Indian stock market continued its surge, as buying was seen till the final minutes of trade. As a result, Sensex closed 457 points up, while Nifty posted gains of 132 points. Mid-cap and small-cap indices also posted gains for the day. On the daily chart, Nifty has cleared the upper boundary of the falling channel, and is now approaching the upper boundary of the triangle. Near the upper boundary of the triangle, bulls can expect resistance, but once this hurdle is cleared on a closing basis, the market has a very high probability to scale new highs. On the hourly charts, downside supports are nailed at 2829 and 2796. Daily KST is rising and has also breached the zero line. Market breadth favoured bulls with 873 advances and 336 declines.

The hourly KST blasted after giving a positive crossover.Our short-term bias has been revised up for the target of 3050 with the reversal pegged at 2815. However, our midterm bias is still down for the target of 2450 with reversal at 3111.

Buying was witnessed across sectors, with all the sectoral indices ending higher. Banking, energy and metal stocks posted maximum gains for the day, while realty and fast moving consumer goods stocks posted the lowest gains.From the 30 stocks of Sensex, Ranbaxy Laboratories (up 11%), Tata Steel (up 10%) and Reliance enfrastructure (up 10%) led the pack of gainers, while DLF (down 2%) was the only losing stock.