MUMBAI: Equities continued with its upward march on Monday following surge in Asian markets after China announced a stimulus package. Metals, power and capital goods were the top gainers. China announced a huge 4-trillion yuan ($586 billion) stimulus package. Out of which 100 billion yuan, earmarked for this quarter, will be spent on low-rent housing, roads, railways and airports and infrastructure in rural areas. The funds, equivalent to almost a fifth of China's gross domestic product last year, will be used by the end of 2010, the State Council said. “The markets are likely to take-off from where they left on Friday. The reasons are obvious. First is that the US markets have done well in terms of taking in its stride the adverse job data that came in on Friday. And secondly the Chinese have announced a massive half a trillion dollars economic stimulus plan. While we remain skeptical about the ability of China to make up for the lost GDP growth of the western hemisphere, it will never the less, give the commodities a bounce,” said Anagram Stock Broking note. "Momentum oscillator MACD (moving average convergence divergence) is in a buy mode which is the key technical trigger for the bullishness in index. However, any close below 9320 for Sensex suggests continuation of bear trend which could even breach the October bottom of 7697. Should the level of 9320 hold and if Sensex crosses the key resistance of 11000 on upside, index will be in the fresh bull trend as higher top and higher bottom formation will be made and next target for the Sensex will be 12000," said Satyen Chaudhari, analyst with Spectrum Advisory.

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