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| The Bombay Stock Exchange (BSE) Sensex ended the day at 3668.07 (up 90.18 points) levels and the National Stock Exchange (NSE) S&P CNX Nifty 50 closed at 1139.45 (up 20.40 points). |
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| The market breadth was positive as the ratio of advances to declines on the two exchanges combined was 1563 : 1000. Traded volume on the BSE stood at Rs 1,616 crore, while it was significantly higher at Rs 3,345 crore on the NSE. |
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| The capitalisation of the breadth was also positive as the numbers were Rs 3,790 crore: Rs 1,167 crore on the BSE and the NSE taken together. |
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| The markets have rallied on higher volumes and positive breadth which is an indicator of strength and optimism. |
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| As advocated yesterday, the markets have been firm, especially since the indices have received support at the 30-day simple moving averages and thereby raising the probability of the downward correction having ended. |
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| The index heavyweights have participated in the upmove, which makes this rally more sustainable, barring the expected profit taking. |
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| The outlook for Friday is of optimism as the undercurrent is outright bullish and follow-up buying from retail investors is expected with marginal profit taking at higher levels. |
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| Traded volumes may not be very high due to it being the weekend session. Players may prefer to take a more aggressive approach in the next week. |
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| Stock-specific activity maybe seen in i-flex. The counter is likely to gain due to the bullishness in the tech sector. Buy at Rs 1,260 levels and maintain a stop-loss at Rs 1,240 levels for a medium-term perspective. |
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| ICICI Bank gets historical support at the 30-day simple moving average, which is currently at Rs 150 - Rs 151 levels. Buy at the current levels with a stop-loss at Rs 150 levels for the medium-term. Buy in the cash and derivatives segments. |
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Vijay Bhambwani
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| CEO, BSPLindia.com |
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| The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com. |
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| Sebi disclosure: The analyst has no exposure to the scrips mentioned above. |
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