Traded volumes were lower than the previous session, though higher than the 10 day average. The market breadth was positive as the BSE & NSE combined figures were 1509 : 1021 and the capitalisation of the breadth was highly negative as the combined exchange figures were Rs 1,716 crore : Rs 5,442 crore.
This indicates a buying momentum on the mid cap stocks with a selling bias on the index heavy-weights. Though the market breadth was positive, the fact that the traded volumes were lower, indicates a lack of buying conviction at higher levels.
The indices are still unable to overcome the hurdle of the 1630 levels on the Nifty and 5130 on the Sensex. Until that occurs, the market mood is likely to stay cautious.
These hurdles need to be surpassed with convincing volumes and a highly positive market breadth to confirm a sustainable upmove. Expect support at the 1574 then at the 1550 levels on the Nifty on the downside.
The support on the Nifty is nearer than the Sensex which needs to fill a large gap made on the upsides on the October 3, 2003, at the 4913 levels. These supports are the crucial levels that short term traders need to watch in the coming week ahead.
The outlook for Monday is positive as the BSE Sensex is undergoing a revamp of composites and the new week is likely to imbibe some confidence in the bulls.
Should the US markets, particularly the Nasdaq composite index close above it
