The market breadth was positive as the BSE and NSE combined figures were 1839 : 856. The capitalisation of the breadth was marginally positive as the combined exchange figures were Rs 3981 crore : Rs 3417 crore. This shows a broader buying momentum from retail participants. The rally has been qualitatively better than the previous days session.
The indices have remained above their short term supports and have been bouyant. The short term momentum oscillators point towards a cautious sentiment ahead as the readings are in the over bought zone.
The supports on the lower side are at the 1648 and 5180 levels on the Nifty and Sensex respectively.
On the higher side, expect resistance at 1685 and 5250 in the absolute short term. The traded volumes need to perk up slightly along with the market breadth to indicate a buying support from stronger hands.
The outlook for the market on Thursday is that of cautious optimism as follow-up buying support seen in the last few days is likely to continue at lower levels.
The derivatives segment shows a build up of positions in the options segment rather than stock futures. This indicates a cautious approach from the larger segment of market players.
Stock specific activity is likely to be seen in-
GAIL: This counter has been consolidating above 170 and is likely to breakout above the 183 / 184. Buying above this inflection point in the cash and derivatives segment is advisable for gains in the short term.
Polaris: This stock has broken out of an upward sloping channel and confirmed bullishness at the 195 levels. Expect a 3-5 per cent appreciation in the short term
Vijay 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 author has no outstanding positions in any of the stocks mentioned above.
