This was the third strong going day for the markets as they were well holding above the important Fibonacci retracement level of 61.8%, which are 4,775 for the Nifty and 16,035 for Sensex. Markets have entered into a fresh new zone and consolidating and waiting for a fresh trigger to take the market to new high.

The technical oscillator RSI on the daily chart is at 64 which are still not in an overbought territory giving sign of an additional 5% rally from this current level in coming days. For tomorrow support for nifty is at 4780?4720, traders can buy nifty around these levels with a stop?loss of 4680. In the immediate term 4870?4910 seems the higher band for the market. Nifty trading above these levels gives a target of 5050.

Banking & Metal and Reliance Ind looks a great buy on every dip as strong action is witnessed in most of the related counters.

STOCK IDEA:

1) APIL (536) – Buy on dip and hold with a longer time horizon, counter showing strong sign of revival, if maintains above 550 in the intermediate term then look for a target of 595?610.

2) HDFC BANK (1475) – Buy with a stop?loss of 1450 as counter has consolidated for three sessions around this level and is now ready for a move. Resistance at 1490, if maintains above then look for 1520?1570?1650.

3) HCC (111) – Buy and hold with a stop?loss of 107, stock has been consolidating around these regions, if maintains above 115 in the intermediate term, then look for a target of 127?137.

4) JSW STEEL (731) – Buy with a stop?loss of 720?710 as the counter has not participated along with its other peers company. If maintains above 750, then look for a target of 770?820.