| The traded volumes were marginally higher than the previous session and lower than the 10-day average. |
| The market breadth was positive as the BSE and NSE combined figures were 1629:987. The capitalisation of the breadth was also positive as the figures on a BSE and NSE combined basis were Rs 4,163 crore to Rs 1,333 core. |
| The derivatives data available for the previous session show a stagnant open interest as the outstanding futures positions have remained largely unchanged. That shows a 'wait and watch' approach in the bull camp. |
| The Nifty has clawed up as compared to the previous session, and managed to close above it's critical threshold levels of 1603 and the Sensex remains lower than it's trend determining level of 5126 mark. |
| The higher traded volumes are a minor positive and the coming two sessions should be crucial in terms of the trend determination process. |
| The intraday resistance will be at the 1632 and 5150 levels on the Nifty and Sensex respectively. The support on the lower side is likely at the 1587 and 5068 levels in a weak market scenario. |
| The traded volumes will play a large part in deciding the immediate trend in the markets. |
| The outlook for the markets on Wednesday is that optimism and buying focus will be on the cement and pharmaceutical stocks. |
| Stock specific activity is likely on Grasim. This counter has shown high relative strength as the scrip has been moving higher on a bullish trendline. |
| A congestion zone will be surpassed once the 1056 levels are overcome and on high traded volumes. Traders should buy towards the end of the session if the scrip trades consistently over 1056 with a stop loss of Rs 12 and expect 2-3 per cent upmove in the near term. |
| Buying is recommended in the cash and futures segment. Since the markets are choppy, I advocate taking positions on lower volumes. Vijay L Bhambwani |
| SEBI disclosure: the analyst has no exposure to the scrips mentioned above. |
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