Markets on May 15: Rally across the board (Upward bias intact)

Brushing off the media reports of a fractured mandate for the parliamentary election 2009, (which is not considered to be good for the mar...

Brushing off the media reports of a fractured mandate for the parliamentary election 2009, (which is not considered to be good for the market), the benchmark indices started the day in positive and ended way in the green. The Sensex ended 300 points higher, while Nifty closed 78 points up. Mid-cap and small-cap stocks also joined the party, with the BSE MIDCAP and BSE SMLCAP rising by 1.33% and 0.84% respectively. The trading range of Nifty is still intact and we did not get a decisive breakout on either side. On the other hand, the hourly momentum cycle has violated its falling trend line, which indicates that the probability of Nifty giving an upside breakout from the range is high. Good support levels on downside are 3635 and 3615. Bulls dominated the market breadth with 736 advances and 478 declines on NSE.

Our short- and mid-term biases both are up for the target of 3750 with the reversal placed at 3530 for short term and 3515 for medium term.

Buying was witnessed across sectors bar select fast moving consumer goods stocks, which witnessed profit booking at higher levels. From the 30 stocks of the Sensex, Ranbaxy Laboratories (up 9%), ICICI Bank (up 7%) and Grasim Industries (up 5%) led the pack of gainers, while ONGC (down 2%), National Thermal Power Corporation and ITC (both down by half a percent) were in forefront of losing stocks