The markets opened on a weak note and ended with strong gains as the Nifty managed to surge past the 2990 which was the bearish pivot advocated for Thursday. The benchmark indices gained over 3.5 per cent at close. The traded volumes were higher as compared to the previous session, which is a positive indicator on an uptick session. The market breadth was positive as the BSE & NSE combined advance decline ratio was 2275:1382. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 15,940 cr:Rs 1,332 cr.
The indices have closed in the upper end of the intraday range and that too on higher volumes and positive market internals. While the bears did attempt to trounce the bulls, the “evening attack” pattern enacted by the bulls seems to have put the bears on the defensive for now. The intraday range specified for Thursday at the 3030/2850 was overcome on the upside as the Nifty shot past the hurdle and also closed comfortably above this threshold.
The coming session is likely to witness a range of 3150 on advances and 2950 on declines. Traders may note the rising daily range, which is a positive sign in the absolute near term. The coming session is a weekend one and will need strong triggers to witness aggressive fresh buying.
The outlook for the markets on is that of continued optimism subject to positive overseas cues. Avoid fresh short sales till compelling evidence warrants such a move.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)