| The traded volumes were significantly higher than the previous session, which is a sign of minor caution. |
| The market breadth was marginally positive as the BSE and NSE combined figures were 1712 : 1677 and the capitalisation of the breadth was also positive as the figures on a BSE & NSE combined basis were Rs 20454 crs : Rs 4368 crs. The F&O data for the previous session indicates a build up of fresh long positions by the bulls. |
| Most of the indices have exhibited key reversals (closing is lower than the opening) and traded volumes have been significantly higher. The intraday highs are significant highs of the ongoing rally. |
| That shows immediate weakness in the bull camp as the upsides are encountering selling pressure. Historically, we have witnessed short term weakness within 1 - 3 sessions after large-scale key reversals are seen in the index charts. |
| Also please note that the 3392 / 3340 band for the Nifty specified yesterday has held with a small variation, thereby confirming the wave count. |
| The coming session is likely to witness an intraday range of 3322 on declines and 3394 on advances. As can be seen, the upper band has not changed much over the previous session, which indicates fatigue at higher levels - for now. |
| The outlook for the markets on Wednesday is that of caution as upsides may encounter profit sales by short-term traders and should the 3394 top not be surpassed, the immediate upmove maybe capped. I advocate profit sales for short"�term bulls and also watching the 3322 support on declines. A violation of the threshold will witness fresh weakness as a fibonacci pattern would have been violated. Vijay L. Bhambwani |
| The author is a Mumbai based investment consultant and invites feedback atvijay@BSPLindia.com or ( 022 ) 23438482 / 23400345. |
| SEBI disclosure: the analyst has no exposure to the scrips mentioned above. |
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