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Upsides may see unloading ahead

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Vijay Bhambwani Mumbai
Last Updated : Feb 05 2013 | 2:06 AM IST
The markets continued on a roll for the sixth day in a row as the bulls persisted in their buying throughout the session. Traded volumes rose above the 10-day average and the risk appetite was higher as the biggest gains were seen in the CNX Midcap index.
 
The market breadth was positive as the combined exchange advance decline ratio was 2408 : 1426. The capitalisation of the breadth was also positive as the commensurate figures were Rs 12,918 crs : Rs 2,788 crs. The F&O data for Thursday indicated a routine decline in net long positions on the expiry day.
 
The indices have closed at the upper end of the intraday range with positive market internals. That lends optimism to the near term scenario.
 
The Nifty now trades above the "golden mean" retracement level and is poised to test higher levels. As long as the 4400 level is not violated downward, the outlook will remain positive. The 4450 resistance specified for Friday was easily overcome as the undertone was bullish.
 
The coming session is likely to witness a range of 4495 on advances and 4420 on declines. Traded volumes and market breadth will be key indicators of near term trend determination.
 
The outlook for the markets on Monday is that of continued optimism though profit sales may be expected. Traders may tread with caution as the upsides may see unloading from weaker hands and therefore aggressive big ticket fresh longs must be avoided. Desist from selling short.

Vijay L. Bhambwani
(CEO- BSPLindia.com)

 
The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com or ( 022 ) 23438482 / 23400345.

 
Mandatory disclosure: the analyst has no exposure to the scrips mentioned above.

 
 

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First Published: Sep 01 2007 | 12:00 AM IST

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