| The markets flattered to deceive on Thursday as panic at the Reliance group counters set the cat among the pigeons. The benchmark indices ended the session with minor losses. |
| The traded volumes were subdued compared with Wednesday's session. Sentiment was cautious as the money flow oscillators show a large-scale absence of retail participation. |
| The market breadth was slightly negative as the ratio of advancing to declining shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined stood at 1487 : 1706. |
| The capitalisation of the breadth was also negative as the figures on the two bourses combined were Rs 3,356 crore : Rs 4,350 crore. |
| The indices have managed to close above the psychological threshold levels and are above their channel tops according to the short-term charts. |
| The resistance areas will continue to remain at the levels specified yesterday at 1917 and 6075 on the Nifty and the Sensex, respectively. |
| The support on the downside in the immediate future is likely at the 1884 and the 6009 on an intraday basis in the coming session on Monday. |
| Traded volumes will play a crucial part in the trend determination process as the new settlement in the derivatives segment has commenced and retail participation can be gauged from traded volumes. |
| The outlook for the markets on Monday is that of cautious optimism as the sentiments will depend on the newsflow on the Reliance front as also on the crude prices in the global markets. |
| The upsides are likely to be met by profit taking from short term players and thereby limiting the gains. I would advocate absolute caution and refrain from aggressive long positions.
Vijay L. Bhambwani |
| Sebi disclosure: the analyst has no exposure to the scrips mentioned above. |
Above the psychological threshold
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First Published: Nov 26 2004 | 12:00 AM IST
