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Higher levels may trigger a cool-off

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Vijay Bhambwani Mumbai
Last Updated : Feb 05 2013 | 2:36 AM IST
Picking up from where they left yesterday, the markets logged a record breaking upmove as the recent bullish pattern on the oriental charts sprang a surprise upmove. The market internals were strong as the breadth was positive.
 
The combined exchange figures were 2925:1025. The capitalisation of breadth was also positive as the commensurate figures were Rs 24726 crore:Rs 4820 crore.
 
The F&O data for the previous session had indicated a robust build up of fresh long positions in the stock futures segment amid higher traded volumes.
 
The indices have closed at the upper end of the intraday range and that too on higher traded volumes and positive internals. The high traded volumes are a critical confirmation of the bullish undertone.
 
The intraday resistance specified for Wednesday at the 5800 level was overcome very convincingly and by a wide margin. That indicates the strength in the undertone.
 
The coming session is likely to witness a range of 6090/5780. The wide range is due to the big intraday move on Wednesday. There is a fair possibility of a cool-off on Thursday after today's major upthrust and profit taking may therefore be expected.
 
The outlook for the markets on Thursday is that of continued optimism with a possibility of profit sales at higher levels. Avoid short sales for now.

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.
 
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.

 

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First Published: Nov 15 2007 | 12:00 AM IST

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