Markets rally after significant correction

Stocks rallied overall on the Indian bourses today after sentiments turned positive with lot of good news pouring in. The major among them were the headline Inflation declining marginally but the food inflation data declining significantly to around 8%. Also softening of crude prices worldwide after there was clarity on the Egypt scenario. The sensex was up 474 points and the major technical observation to be seen was that on the charts it opens with a GAP today

 The RSI bouncing back (yet again) out from the oversold zone, the correction seems to be technically over.
A more respite will be as the sensex climbs upwards to reclaim the 200 DMA support at 18700 levels.
Till now the trend should remain upward with resistance coming at around 18450 levels.
The Sensex has support at 17500 levels as of now.

Among individual stocks, YES Bank, Axis Bank are the banking stock picks.

Also Ashok Leyland, Tata Motors (another GAP pick), Tata Steel are some of the stocks where positive divergence (BULLISH) is seen. (see charts above)

Reliance Industries has not been a part of this 2 day rally. Given the weightage it has in the index and still the index rallied about 470 points gives in the idea of the strength of the overall rally.

RIL has some issues with the SEBI on insider trading probe.

Technically the stock has provided some positive cues. But entry is not recommended until the SEBI issues get clear.