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| The Bombay Stock Exchange (BSE) Sensex ended at 3721.65 (up 35.31 points) while the National Stock Exchange (NSE) S&P CNX Nifty 50 ended the day at 1168.75 (up 08.90 points). |
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| The market breadth was positive as the ratio of advances to declines on the two exchanges taken together stood at 1761: 816. |
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| Traded volume on the BSE was Rs 1,390 crore, while on the NSE it was more than twice that at Rs 3,353 crore. |
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| The capitalisation of the market breadth was highly positive as the numbers were Rs 4,248 crore: Rs 485 crore on the two bourses combined. |
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| The buying pattern today hints at purchasing frenzy by both the institutional and the retail players. |
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| That is indicative of underlying strength. |
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| The indices are inching towards their congestion levels at 1185/1190 and 3760 on the Nifty and the Sensex, respectively. |
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| The traded volumes have been below normal though the rally has been sharp. |
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| Traders need to watch the price / volumes combination for clues towards the short-term outlook. |
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| The outlook for Thursday is one of cautious optimism as the bulls seem to be regaining control of the markets after a brief correction. |
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| Buying is likely to be concentrated around index heavyweights and large-cap stocks because foreign institutional investor buying is likely to continue. |
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| Among stocks, Gujarat Ambuja Cements is likely to go into a low resistance zone above Rs 210 levels and is a market outperformer. |
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| Buy in the derivatives and cash segments in a firm market, especially above Rs 210 levels. |
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| I expect a 5 per cent appreciation in the near term. |
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| Reliance is likely to turn distinctly bullish above Rs 346 levels. |
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| The oscillators are supporting the rally and the market is likely to see this scrip leading the bull run from the front. |
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| Expect Rs 355 or higher in a conducive market. Buy in the cash and derivatives segment. |
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Vijay Bhambwani
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| CEO, BSPLindia.com |
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| The author is a Mumbai-based investment consultant and invites feedback at vijay@bsplindia.com. |
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| Sebi disclosure: The author has no exposure in any securities mentioned above. |
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