Markets on April 24: Up move continues (Watch out 3512)

The markets continued their upward trend, as buying intensified during the final hour. The Sensex closed 194 points up, while Nifty wrappe...

The markets continued their upward trend, as buying intensified during the final hour. The Sensex closed 194 points up, while Nifty wrapped the session 57 points up. The BSE mid-cap and small-cap indices also ended the day in the green. Though Nifty rallied in full swing since the opening bell, the high of 3512 is not yet cleared. This makes us count the current up-move as a pullback. On the hourly chart, Nifty has surpassed the hurdle of 3470.The daily KST is still in the sell mode. Bulls dominated the market breadth with 766 advances and 443 declines.

On the hourly chart, the momentum oscillator KST, after the positive crossover, has also breached the falling trend line, but not yet cleared the hurdle of 3512, which indicates that the current rally could be a trap for bulls. Our shortterm bias is down for the target of 3150 with the reversal pegged at 3550. However, our mid-term bias is up for the target of 3650 with the reversal nailed at 3050.

While buying was seen in consumer durables, banking and capital goods stocks, software and fast moving consumer goods’ scrips bore the brunt of profit booking. From the 30 stocks of the Sensex, Mahindra & Mahindra (up 7%),Jaiprakash Associates (up 6%) and Grasim Industries (up 6%) led the pack of gainers. However, Ranbaxy Laboratories (down 2%) and Hindustan Unilever (down 1%)led the clutch of losers.