Bullish crossover of hourly averages

Markets on March 16: 2750 – 2800 : Resistance zone

On the back of persistent buying activity led the Indian indices to continue their upward
journey until the final hour of trade. The Sensex closed higher by 186 points, while the
Nifty closed higher by 58 points. Stocks from the mid-cap and small-cap indices ended
the day on a firm note as well. On daily chart, apart from puncturing the bearish trend
line, Nifty has also cleared the hurdle of 20-daily simple moving average and 40-daily
exponential moving average. 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 get cleared Nifty will face resistance in the upper zone. Again today on hourly
charts we got 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 packed at 2530. However our
mid-term bias is still for the target of 2450 with reversal nailed at 3111.

Buying activity was witnessed in stocks across sectors, with stocks from the realty and
energy space leading the pack of gainers. From the 30 stocks of Sensex Jaiprakash
Associates (up 9%) and Mahindra and Mahindra (up 9%) led the pack of gainers.
However Sun Pharmaceuticals (down 2%) and Maruti (down 2%) led the pack of losers.