Short-term charts suggest an upthrust

TECHNICALS

The market opened with a slight spring in it's step, see-sawed through the session before ending off intraday troughs. The traded volumes were lower as the participation levels fell.

The market breadth was positive as the combined exchange figures were 2408:1425. The capitalisation of breadth was marginally negative as the commensurate figures were Rs 7580 crore:Rs 7909 crore.

The indices have closed at the upper half of the intraday range as the bulls resisted the bearish forces towards the close of the session. That the market internals were positive adds to the evidence of a short-term upthrust.

The 4575/4885 range specified for Tuesday was not tested in either direction as the intraday range was truncated after the big move on Monday.

The coming session is likely to witness a range of 4625 on declines and 4845 on advances. The traded volumes above the 4740 levels will determine the strength of the bulls as this level is the bullish pivot for the coming session.

The market internals indicate a lower turnover as the participation levels fell on declines. The number of trades decreased sharply and the average ticket size was lower, indicating marginal selling. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets on Wednesday is that of optimism as the short-term charts point to an upward swivel provided there is no negative trigger from the overseas markets. Attempt small scale purchases.

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/s recommended above.