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What began as a quiet day has ended with a bang. The indices were trading in a range for most of the session before a sharp spurt in the last hour of trade.The Nifty closed at 4,942 up 112 points, while the Sensex shut shop at 16,371 up 356 points.

Technical Analyst Ashwani Gujral is positive on Infosys and Tata Steel.

“When the bad inflation numbers came, the market tried to decline but could not drop below 4,800 and decisively below 16,000. When the market does not drop on bad news, that means it’s going up. So, that was a clear signal that this market intends to break out above 4,900 and we would carry positions from here and expect the market to touch 5,050-5,100 on the Nifty next week,” said Gujral.

“Even the midcaps and the smallcaps would bounce back. But how sustainable would that be depends because above 5,050-5,100, lot of action would again shift to the better quality midcaps. Right now, everything is bouncing 10-20% because it’s been beaten up so much. But overall midcap and smallcaps tend to take much longer then the largecaps. So, your trade has to be in the largecaps around 5,050-5,100. You need to take a fresh view in terms of what kind of strength the market is showing,” he added.

Here’s how Ashwani Gujral views the stocks on board:

On Tata Steel and Infosys:
Technology seems to be showing a lot of strength both on the midcap and the largecap. Tech is bottoming out and if US markets are strong, it tends to have an impact on technology; Infosys could head up to Rs 1,700-1,750. That is the region from where it broke down from and consistently on good days it tended to do well.

Even on Tata Steel, Rs 650 is a good support and probably Rs 800 could be a decent target on this one.

On ICICI Bank, SBI, HDFC:
ICICI Bank could probably test Rs 1,000 and HDFC could get back up to Rs 1,550-1,600, State Bank of India can back up to Rs 2,000. So, there will be across the board rally. But these stocks will probably not get to new highs.

Source: Moneycontrol.com