The Sensex too closed in the positive territory and it continues to trade in an upward sloping parallel channel.
The market made strong gains with the Sensex closed above the psychological 37,000 mark. While the Sensex rose 382.67 points or 1.04 per cent to close at 37,054, the Nifty 50 Index gained 140 points or 1.28 per cent to end at 11,176. There was buying in Mid and Small Cap stocks with the BSE Mid-Cap and Small Cap gaining 1.9 per cent and 1.61 per cent respectively outperformed the Sensex.
Huge buying was seen in Index heavyweight Reliance Industries which gained 2.72 per cent to Rs 1301 while telecom major Bharti Airtel surged 8.08 per cent to Rs 333.70.
Power Grid Corporation of India (3.90 per cent), Coal India (3.80 per cent), Vedanta (2.52 per cent), Tata Steel (2.51 per cent), Asian Paints (2.34 per cent) and Hero MotoCorp (2.24 per cent) were the other major Sensex gainers. Sectors like telecom, oil & gas, metals, banking and reality were in the limelight.
Jay Thakkar, CMT Head Technical and Derivatives Research– AVP Equity Research, Anand Rathi Shares and Stock Brokers, said, "The Nifty closed well in the positive territory in the last trading session and the Index has reached our short term target of 11200 levels. It has surpassed the swing high of Evening star candlestick pattern formed as well as the 61.8 per cent retracement levels; hence we think that if 11250 levels break on the upside further up move will be seen. The short term target above 11250 comes to 11400 which is 78.6 per cent retracement level. The support on the lower side is pegged at 11140 and below those 11100 levels."
The Sensex too closed in the positive territory and it continues to trade in an upward sloping parallel channel. The momentum indicator is well into the buy mode both on the daily as well as weekly charts. The volumes have increased and the Index is likely to inch towards the upper end of the channel. The short term target comes to 37490 whereas the support on the lower side is pegged at 36684 levels.
Nagaraj Shetti– Technical Analyst, HDFC securities, said, "After showing a minor consolidation type pattern in the last couple of sessions, the Nifty witnessed a sharp upside breakout on Monday and closed the day on a hefty gains. A long bull candle has been formed today with gap up opening and today's opening upside gap remains unfilled. The Nifty has moved above the immediate resistance of previous swing high of 11,118 levels (7th Feb) and closed higher. This is positive indication for the Nifty."
He said, the short term trend of the Nifty is positive and one may expect further upside. Next upside levels to be watched are 11,250-70 in the next few sessions.
Vinod Nair, Head of Research, Geojit Financial Services, saod, "Since many stocks are available at cheap valuation, investors rushed to high quality Mid and Small Caps to participate in the pre-election rally. Having said that, market is awaiting CPI inflation data tomorrow and upcoming world's central bank policies to get a clear direction."