The smart gains in the last two trading days, have helped the markets recover most of their calendar year losses. In fact, the major indices the Sensex and Nifty are now trading around their medium-term (50-days) moving averages.
The Nifty, yesterday, regained the 5,000-mark after a gap of one month and one week. The index touched a high of 5,029, and finally ended with a gain of 95 points at 5,017.
Auto, banking and metal stocks were the major gainers. Among stocks Tata Motors was the top gainer, up around 11% at Rs 797.
The Nifty closed a tad higher than its medium-term (50-days) moving average which is at 5,013. However, since the short-term moving average is still below the medium-term moving average, the trend is still said to be negative.
The run-up has been quite sharp from 4,850-odd levels to 5,000-plus. Hence one should expect some consolidation before the next up move. The bulls will have the upper-hand above 5,020, below which the index may correct up to 4,980 or further deeper towards 4,960. The index may face some resistance around 5,050.
The Sensex moved in a range of 370 points, and settled with a gain of 343 points at 16,773. Today, the index is likely to face resistance around 16,915-16,955-17,000, while find support around 16,630-16,590-16,545.
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