Bulls to close in

TECHNICALS

Trading in the first day of the October F&O series began on an optimistic note but ended the day with minor losses as profit sales at higher levels capped gains.

The benchmark indices surrendered territory as the forced short covering on expiry day, which caused a temporary bullishness, was halted by profit sales.

Traded volumes were in line with the last week's average volumes, though volumes were lower than the previous session. The market breadth was highly negative as the BSE and NSE combined figures was 568 : 2806 and the capitalisation of the breadth was also negative as the BSE & NSE combined basis figure was Rs 4072 crore : Rs 6537 crore. Traders will note that the market breadth in numerical and capitalisation terms moved in tandem after a long hiatus.

The outlook for the markets on Monday is that of cautious optimism as the bulls are likely to provide buying support - barring unforeseen adverse news flow over the weekend.

Vijay L. Bhambwani
(CEO- BSPLindia.com)

The author is a Mumbai based investment consultant and invites feedback at vijay@BSPLindia.com  or ( 022 ) 23438482 / 23400345.

SEBI disclosure: the analyst has no exposure to the scrips mentioned above.