Breakouttttttt

05 Jan 2009 | 18:10
Breakouttttttt

The RBI's rate cut move and government's second fiscal stimulus package kept the markets in buoyant mood today. Positive global cues also provided support as the main indices managed to break out of key resistance levels.

While the Sensex closed 317.38pts or 3.19% higher at 10,275.6, the Nifty gained 74.7pts or 2.45% to close above the key resistance levels of 3100 at 3121.45. The broad market indices under performed as the BSE Midcap and Small Cap indices were up by only 1.78% and 1.21% respectively. Market breadth was positive as A/D ratio was 1.96:1 on the BSE. NSE cash turnover was higher at Rs.10,885crs. Vs. Rs.10,460crs. on Friday.

Barring the BSE FMCG and Realty indices, all the sectoral indices ended higher. The biggest gainers were the BSE Metals, Oil and Gas, Bankex and Capital goods. The top gainers from the BSE-30 were Sterlite, Tata Power, JP Associates and Tata Steel. The top losers were Satyam, Bharti Airtel, DLF, NTPC and HUL.

Markets have broken out of their recent highs, which suggest further upsides in the coming sessions. The next upside targets for the Nifty are now at 3150-3250 as it has closed above the 3100 resistances. Traders are recommended to adopt a selective buying approach, especially on declines. Stop losses can be kept just below 3070 as this uptrend would reverse on a close below the same level.