| The benchmark indices gained 0.30 per cent as sentiment improved. |
| Traded volumes were better than Monday's session and lower than the 10-day average. |
| The market breadth was positive as the ratio of advancing to declining shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined stood at 1733 : 1114. |
| The capitalisation of the breadth was also positive as the figures on the two bourses taken together stood at Rs 3,282 crore: Rs 1,607 crore. |
| Derivatives data show a lower traded volume bias with a rise in outstanding long positions. That shows an optimistic undercurrent. The indices have managed to rally higher and that too with improved volumes. That is a sign of optimism in the near term. The immediate resistance is likely at the 1667 and the 5320 levels on the Nifty and Sensex, respectively in the near term. On the lower end, expect support at the 1622 and the 5228 levels on an intra-day levels in the coming session. The traded volumes have improved, which is a positive indicator, should this trend continue, the outlook will improve significantly. The outlook for Wednesday is of optimism as the bulls are back with a firm hold on sentiment and are unlikely to surrender the initiative. Buying is likely to be focussed on the mid-cap counters and banks, software and energy in the heavy weights in the coming session. Barring routine profit taking and adverse news flow from the overseas markets, I do not foresee any major negative triggers for the markets. Among stocks, BHEL is likely to remain a market out-performer in the short term and above Rs 582 levels will see buying support in the cash and derivatives segments. There is a 3-4 per cent upside potential in a bullish market. Traded volumes have shot up above the 10-day average and that is positive indicator. Purchases should be in moderate quantities and with a 2 per cent stop-loss. Vijay L Bhambwani |
| SEBI disclosure :- the analyst has no exposure to the scrips mentioned above. |
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