| Traded volumes were stagnant compared with the previous session and the 100-day average. That remains a cause for concern "" the retail investors are still sitting on the fence. |
| The market breadth was positive as the advances to declines ratio on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined stood at 1631 : 948. The capitalisation of the breadth was positive too as the numbers on the two bourses combined stood at Rs 4,444 crore: Rs 1,911 crore. |
| The indicators seem to indicate that bulls are attempting to come to the forefront once again. |
| The indices have closed above the psychological threshold levels of the 1750 and 5550 on the Nifty and Sensex, respectively, for the second time. This is a sign of optimism in the near term. |
| The index is now beginning to make higher bottoms and tops as the bears are letting go of their grip on the markets. |
| The immediate supports for the indices are likely at the 1745 and 5520 in the near term. |
| The resistance on the upsides will be seen at the 1792 and the 5635 on the Nifty and Sensex, respectively, in the coming session. |
| The indices continue to trade in their downward sloping channels and have yet to signal a clear breakout of the short term bearishness. |
| The outlook for the markets on Thursday is that of optimism as the bulls are likely to provide buying support at lower levels at least in the initial part of the trade. |
| The technology sector is the only drag on the markets, being heavily weighted in the indices, this sector will hold the key to the near term outlook for the markets. |
| Among stocks, Maruti above Rs 500 levels will see bullish sentiment because the scrip breaks out of a short-term congestion zone. |
| The next levels are at least 2-3 per cent higher and therefore buying is recommended in the cash and derivatives segment in small lots. Keep a stop loss to protect your trade from whipsaws. Vijay L Bhambwani |
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