The traded volumes were Rs 2,295 crore and Rs 5,213 crore on the Bombay Stock Exchange and National Stock Exchange, respectively.
The market breadth was highly positive as the BSE and NSE combined figures were 1483 : 774 and the capitalisation of the breadth was also positive as the figures on a BSE & NSE combined basis were Rs 7,179 crore : Rs 324 crore.
The indices have surged on high volumes and the breadth in capitalisation shows a near absence of selling pressure on a net basis during the session.
The rally has been very broadbased and most frontline index stocks have participated in the upmove. As indicated yesterday, the Nifty has taken support at the 38.20 per cent retracement from the top and has failed to close below the crucial 1455 mark.
That should be a sign of comfort for the bulls. In the coming sessions, if the Nifty does not test these lows again, expect the previous high of 1574 to be surpassed in the near term. For the next 2 sessions, expect support at the 1450 levels. The outlook seems promising.
Sectoral action is likely to be seen on the automobile, steel, banking and cement stocks. Software stocks are likely to bring up the rear.
The outlook for the markets on Saturday is of optimism as value buying at lower levels is likely to bring back the bulls in the fray.
Stock specific activity is likely to continue on ICICI Bank, Gujarat Ambuja Cements, Maruti, Reliance and SBI.
Vijay Bhambwani
(CEO - BSPLindia.com )
The author is a mumbai based investment consultant and invites feedback at vijay@BSPLindia.com
SEBI disclosure: the analyst has no exposure to the scrips mentioned above.
