The sentiment turned positive on a dime as the overseas cues cheered players who covered shorts on advances. The traded volumes were lower as the gap-up opening kept the retail players at bay.
The market breadth was expectedly positive as the combined exchange ratio was 2820:1029. The capitalisation of the breadth on a commensurate basis was also positive as the figures were Rs 15,389 crore:Rs 533 crore.
The indices closed at the upper end of the intraday range amid poor turnover. That the retail participation left a lot to be desired raises suspicion over sustainability. The 4280 / 4140 range specified for the session was overcome on the upside. The sharp upmove is likely to be followed by a consolidation move and the possibility of Monday being a quiet to downtick session is fair.
The coming session will witness a range of 4445 on advances and 4245 on declines. The bearish trigger for the session will be the 4280. On the flip side, a consistent trade above 4315 will lead to bullishness.
The outlook for the coming session is that of abundant caution as the overseas cues, especially energy prices, will exert significant influence over domestic sentiment.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
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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/s recommended above.