The week is off to a good start as the frustrating range-bound activity of the past week has given a decisive breakout above the 5400 mark and even managed a close near the high of the day. On Candlestick charts a bullish 'marubozu' pattern has formed (i.e. the session opening at low and closing at high with a large intraday range) and signals a continuation of a strong uptrend. The breakout is supported by good volume activity and a favorable breadth of 805:670. Momentum is expected to accelerate, now that the hurdle of 5400 has been cleared and the oscillators are gaining strength. We expect the uptrend to extend towards targets of 5650 and 5750, and the downside pivot is pegged at 5340 (10-Day EMA).
All the sectoral indices ended the day with gains with the exception of a marginal loss of 0.03% on the Healthcare index. The leading indices of the day were IT (+1.76%), Power (+1.66%) and Realty (+1.22%). The underperformance of broader markets continues to linger on with Mid-cap index gaining 0.24% and the Small-cap index gaining 0.52%.
Bullish Setups: INFO, RIL, ACC, PWGR, ADSEZ, GAIL
Bearish Setups: TATA, IDEA, BPCL, HMCL
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