Upward bias intact

Markets on May 15: Rally across the board

Opening the trading session on a positive note, the Indian indices continued to move
northwards as the day progressed to end well in the positive territory. Sensex ended the
day with gains of 300 points, while Nifty closed higher by 78 points. Stocks from the
mid-cap and small-cap space joined the party with gains of 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 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.

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

While buying was witnessed across sectors, select stocks from the FMCG sector
witnessed profit booking at higher levels. From the 30 stocks of Sensex Ranbaxy (up
9%), ICICI Bank (up 7%) and Grasim (up 5%) led the pack of gainers, while ONGC
(down 2%) plus NTPC and ITC both down by half a percent led the pack of losers.