Overseas cues to become crucial

TECHNICALS

The markets opened on a steady note and ended with marginal gains as the players bid adieu to the last settlement of 2007. Traded volumes spiked higher as the rollover process and intraday participation picked up.

Market breadth was positive as the combined exchange figures were 2799 : 1298. The capitalisation of the breadth was also positive as the commensurate figures were Rs 17,368 cr : Rs 15,383 cr. The F&O data indicated a routine paring of exposure on expiry day.

The indices have closed at the lower end of the intraday range as the higher levels proved to be unsustainable due to profit sales from short term players. The 6130 resistance specified for Thursday has held as the Nifty was unable to test this threshold.

That the traded volumes were higher and the bulls prevailed over the bears is a marginal comfort as the "Aka Sanpei" formation was missed by a margin on the oriental charts. The coming session is likely to witness a range of 6115 on advances and 6045 on declines.

The market internals indicate a higher turnover as the participation levels picked up and so did the number of trades.

The outlook for the markets on Friday is that of continued optimism. Barring overseas cues and routine profit sales, the oriental charts suggest strong "Kumho" based support on declines.

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.