Nifty will remain bullish above 5115

TECHNICALS

The markets opened on a bullish note on the back of continued positive overseas cues and proceeded to close with big gains to extend the previous session's strength.

The traded volumes were marginally lower for an uptick session, which indicates a lack of buying conviction at higher levels.

The market breadth was positive as the combined exchange figures were 3138:816 and the capitalisation of breadth was positive as the commensurate figures were Rs 18784 crore:Rs 776 crore.

The indices closed at the upper end of the intraday range and on positive market internals. That the traded volumes were lower can be taken as sign of mild scepticism. The 5020 resistance advocated for Thursday was overcome with ease.

The coming session is likely to witness a range of 5375 on advances and 5035 on declines. The outlook will remain optimistic as long as the Nifty remains above the 5115 levels.

The market internals indicate a marginally higher turnover as the participation levels rose mildly. The number of trades increased and the average ticket size was lower, indicating the absence of big-ticket buyers. The market capitalisation was higher in line with an uptick session.

The outlook for the market on Friday remains that of cautious optimism and as long as the Nifty remains above 5115, expect the bulls to remain in command. Being a weekend session, buying conviction may be restricted. Big ticket buying is still not advisable.

Vijay L. Bhambwani
(CEO- BSPLindia.com)

The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com

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