| The markets opened on a steady note and proceeded to trade higher through the day. The benchmark indices gained over 0.50 per cent as the bulls extended the previous day's gains. |
| The impending expiry of December series saw a routine squaring up of shorts at higher levels, as bears have shown a historical bias towards squaring up outstanding trades ahead of expiry. |
| Traded volumes were lower than the previous session, as was expected. The market breadth was marginally positive as the BSE and NSE combined figures were 1875 : 1385 and the capitalisation of the breadth was also positive as the figures on a BSE & NSE combined basis were Rs 7669 crore : Rs 3420 crore. |
| The derivatives data for the previous session show a faster build up of net long positions as bulls fished for bargains at lower levels. |
| The indices have closed at the upper end of the intraday range and that is a sign of optimism. Lower volumes are partially owing to the weekend factor as also a lack of buying conviction. The 3888 resistance has held and the 3866 minor hurdle has been overcome. |
| The intraday range is now on the ascent and should the momentum sustain for the next 3 - 5 sessions, the outlook can turn positive for short term traders. |
| The Nifty has closed above a minor hurdle and unorthodox technical traders using a simple Fibonacci arc with a basic count will observe signs of a potential breakout. |
| The same will be confirmed if the coming session witnesses a consistent trade above the 3860 on the NIfty cash. The market breadth and open interest will be corroborating triggers for the bulls to watch out for. |
| The outlook for Tuesday is that of optimism as the bulls may manage to trounce bears, barring any unforeseen news triggers over the weekend. Avoid the temptation to go short for now. Merry Christmas !!
Vijay L. Bhambwani |
| Mandatory disclosure - the analyst has no exposure to the scrips mentioned above. |
Bulls likely to retain upper hand
TECHNICALS
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First Published: Dec 23 2006 | 12:00 AM IST
