| The markets opened on a firm footing and proceeded to trade higher through Monday's session. |
| The benchmark indices settled in record territory as bulls expectedly held on to their initiative and controlled the sentiment. |
| The traded volumes were in line with Friday's session. |
| The market breadth was highly positive as the ratio of advancing to declining shares on the Bombay Stock Exchange and the National Stock Exchange taken together stood at 2432 : 743. |
| The capitalisation of the breadth was also positive as the figures on the two exchanges combined stood at Rs 8,674 crore (advances): Rs 638 crore (declines). |
| F&O data for the previous session show a strong buying support from bullish quarters. |
| The indices have yet again surged into record highs and are in uncharted territory where no recorded resistance levels exist. |
| The only way to compute the upsides would be to plot the time / price action charts and the wave theory. |
| The immediate resistance on the upsides will be seen at 2124-2128 levels and 6718-6725 levels on the Nifty and Sensex, respectively. |
| The support on the downsides will be seen at 2089 and 6652 on the Nifty and the Sensex, respectively, on an intra-day basis in the coming session. |
| The boost is likely to come from the energy, power, textiles and automobile counters. |
| The outlook for Tuesday is of optimism as the bulls are likely to remain in charge. |
| Bears will be forced to cover their shorts and cushion the falls, if any. |
| The downsides are likely to be limited and typical bull market corrections are short lived. |
| Among shares, activity is likely to be seen in HPCL and BPCL, which have signalled breakout from their short-term congestion levels. |
| Further 2-4 per cent upsides cannot be ruled out in the short term. Buying is recommended in the cash and derivatives segments.
Vijay L. Bhambwani |
| Sebi disclosure: the analyst has no exposure to the scrips mentioned above. |
Bulls continue to hold reins
TECHNICALS
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First Published: Jan 04 2005 | 12:00 AM IST
