The markets extended the upmove for the third day in a row as the final hour of trade saw a sharp upthrust in values. The rally was led by the banking and technology stocks whereas the midcap sector under-performed on retail abstinence. The pre-expiry bear squeeze had a major domo role to play in the upthrust, though the overseas cues stoked the sentiments as well. The market breadth was positive as the BSE figures were 1,392 : 1,138. The capitalisation of the breadth was also positive as the buyers outnumbered the sellers.
The indices have closed at the upper end of the intraday range as the buying momentum caught on in the final hour of trade. The test of the sustainability of the bulls will be in the coming days as the expiry-related short-covering would be out of the way and only fresh buying support can push prices higher. The intraday range specified for Thursday between the 3,050 / 2,925 was overcome on the upside after the bullish pivot of 2,970 was overcome with strength. The coming session is likely to witness a range of 3,150 on the upsides and 2,980 on declines. The wide range is due to the large base effect of Thursday. The bullish pivot will be at 3,050, above which the markets will attempt an upthrust. The bearish pivot will be at the 3,030 level, below which the bears may attempt fresh sales.
The outlook for the markets on Friday is that of consolidation as the weekend factor coupled with the recent big-ticket price moves are followed by relatively quieter sessions.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)
