The bourses kicked off firm and proceeded to trade higher through Thursday.
The bullishness seen overnight in the US markets percolated to the domestic bourses, particularly to the technology sector.
The Bombay Stock Exchange (BSE) sensex closed the day at 3262.20 (up 45.71 points) and the National Stock Exchange (NSE) Nifty 50 wrapped up at 1035.05 (up 14.00 points). Traded volume stood at Rs 1,376 crore on the BSE, while on the NSE it was much higher at Rs 3,318 crore.
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The market breadth was slightly positive as the advances to declines figures on the two bourses combined stood at 1226 : 1164.
The capitalisation of the breadth was highly positive as the figures were Rs 3,019 crore (advances): Rs 1,672 crore (declines).
The indices have broken out of the resistance of the downward sloping channel and are trading above their 200-day simple moving averages.
This is a sign of bullishness. The breadth signals selling pressure on the side counters and small-cap stocks, which came under profit booking.
However, the larger cap counters have fared well in terms of attracting buying momentum.
Traded volumes have improved and that is also a sign of better sentiment.
The outlook for Friday continues to be optimistic as the underbelly is distinctly bullish. Selling maybe corrective in nature and therefore short-lived.
These are signs of a bullish market. Among shares, Reliance Industries, as advocated yesterday, led Thursday