Markets were moving in a narrow range after a positive start Thursday due to lack of positive cues from global peers. Benchmarks are also likely to consolidate at current levels after two-day rally.
Nifty managed to lock in further gains as it advanced past 5200 with an upside gap which remained intact. Most global indices have registered high for the year and a range breakout. The bullish uptrend gets the latest confirmation according to Dow Theory also. Having said that, the index is likely to oscillate sideways as short term oscillators are in an overbought territory.
Pullback till 5200-5180 should be used to create fresh longs for a target of 5310-5400. Bullish view would get negated in event of a closing below 5100. 20, 50 & 100 SDMA are near 5020 which is now the strongest support area. While the large caps cooled off a bit after a strong up move, the midcap names garnered some strength.
Multiple inverse H & S patterns are visible in single stock futures (SCI, CIPLA, and RIL). Metal and shipping are likely to attract fresh longs. JSPL, Sterlite and Tata Steel remain top picks in the index. Underperformance in oil refineries and realty is likely to continue, said Edelweiss report.
Bombay Stock Exchanges Sensex was at 17494.01, up 3.93 points or 0.02 per cent. The 30-share index touched a high of 17544.07 and low of 17486.76.
National Stock Exchanges Nifty was at 5231.25, down 0.65 points or 0.01 per cent. The index touched a high of 5248.85 and low of 5231 in early trade.
BSE Midcap Index was up 0.16 per cent and BSE Smallcap Index moved up 0.31 per cent.
Amongst the sectoral indices, BSE Healthcare Index advanced 0.46 per cent and BSE Capital Goods Index moved 0.23 per cent higher. BSE Realty Index slipped 0.51 per cent and BSE FMCG Index declined 0.24 per cent.
US stocks gained on Wednesday, pushing the Dow to a 17-month high, after a benign February inflation reading supported the Federal Reserve's renewed pledge of low interest rates.
The Dow Jones Industrial Average gained 47.69 points, or 0.45 per cent, to end at 10,733.67. The Standard & Poor's 500 Index rose 6.75 points, or 0.58 per cent, to 1,166.21. The Nasdaq Composite Index advanced 11.08 points, or 0.47 percent, to 2,389.09.
Meanwhile, Asian equities were trading on a mixed note amid valuation concerns. The Nikkei shed 0.08 per cent while Topix edged up 0.04 per cent. Hang Seng rose 1.72 per cent while Straits Times shed 0.3 per cent.