Bulls may extend new-found initiative
TECHNICALS
| The market breadth remained positive as the combined exchange figures were 2826 : 1024. The capitalisation of the breadth was also positive as the commensurate figures were Rs 11898 crore : Rs 2845 crore. |
| The benchmark indices gained a tad at close as the profit sales at higher levels proved to be formidable in the near term. The derivatives data for Friday's session indicate a build-up of fresh positions, indicating that the bull was alive and kicking. |
| The indices have closed at the median point of the day as the tug-of-war between the bulls and bears was just about marginally tilted in the bulls favour. |
| The closing was fairly close to the opening levels, thereby indicating a truncated sentiment by closing time. Japanese Candle buffs will realise a "hoshi" formation on the daily chart which will indicate weakness if the Nifty trades consistently below the 4438 levels with higher volumes. |
| The 4495 level advocated as a resistance for the Nifty from Monday was validated by the markets as the intraday high was 4490. The coming session is likely to witness a range of 4450 on declines and 4500 on advances. Watch the traded volumes especially if the markets choose to slide. |
| The outlook for the markets on Tuesday is that of guarded optimism as bulls may attempt to extend their new found initiative - subject to overseas cues. Vijay L. Bhambwani |
| The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com or ( 022 ) 23438482 / 23400345. |
| Mandatory disclosure: the analyst has no exposure to the scrips mentioned above. |