Traded volumes were marginally lower as compared to the previous session which shows an absence of panic selling at lower levels.
The retail segment is still holding on to long positions. The capitalisation of the market breadth was also balanced with slight bullish bias which is a positive sign.
The indices have yet again failed to close above their immediate congestion levels of 4471 & 1431 on the Sensex and the Nifty, respectively.
In my opinion, the next hurdle is hereabouts and only if these levels are surpassed with convincing volumes and a highly positive breadth, should aggressive buying be resorted to.
On the lower side, expect support for the Nifty at 1370 levels and the Sensex at 4350 for the next trading session.
The price volume action will hold the key to the immediate trend in the markets in the next 3 - 4 sessions.
Traders should keep their ears to the ground for any signs of accumulation / distribution beyond the above specified bands. The larger picture still remains positive for now.
The outlook for the trading session on Friday is that of caution as session being a week ended one, will see caution from all players.
Expect a lack of large-scale commitments from the bulls and rangebound trade with a profit taking bias at higher levels.
Among stocks, SBI is showing signs of high relative strength as the scrip is all set to test the previous significant high of Rs 460.
Should this level be surpassed with convincing volumes, expect a 3 - 5 per cent appreciation as being highly likely in the next few days. Buying is recommended in the cash and derivatives segments.
Mahindra & Mahindra, as mentioned yesterday, is showing very high relative strength as the scrip has surpassed it
