§ The Nifty managed to break the resistances and closed at a new 52 week high at 5231. The advance was backed with increase in volume and consistent high formation throughout the day. Market breadth improved to better than 2:1. Large cap concentration was also accentuated with 48 Advancing scrips in the benchmark Nifty Index. Japanese candlestick pattern of a Bullish Belthold infuses bullish confidence. On front of price pattern, the falling channel got breached paving way for yet another high. The Nifty is now in a new broadening formation (see chart below) which has resistance around 6420 which would be at a new high. Near term support should be at 6200-6165 range
§ Strength in IT scrips surprised many as the bellwethers scrips like Infosys and TCS hit fresh highs. Lot of other largecap nameslike HDFC & HUVR made a comeback after the weakness seen in past few sessions. Expect strength in IT, Banking , realty and Metals as the Index attempts to test the Highs Bullish Setups: RCOM, JPA, Unitech, KTK Bank, IFCI, M&M Bearish Setups: HDFC Bank, Bharti, Ambuja and IOC
§ Major global indices went past the resistnce zone in a synchronized move. SHCOMP, SPX, HIS & Nifty ook poised to extend the rally. The rally is also replicated in precious metals, base metal as well as agri commodities most of them are breaking the highs. Crude continues to face supply at 83 level.
§ Interesting chart setups: HCL Tech
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