| The markets opened on a strong wicket and proceeded to trade higher through the day. The benchmark indices gained nearly 2.70 per cent on a closing basis. |
| The traded volumes were lower than the previous session as higher levels saw scepticism within the retail segment. |
| The market breadth was highly positive as the BSE and NSE combined figures were 2300 : 1081 and the capitalisation of the breadth was also positive as the figures on a BSE & NSE combined basis were Rs 10,538 crore : Rs 1,344 crore. |
| The F&O data for the previous session show a short-covering bias as the bears have preferred to cut their positions to lock in gains. |
| The indices have closed at the upper end of the intraday range and the lower traded volumes apart, the near"�term outlook suggests some more short covering cum marginal buying. |
| The 3407.73 resistance specified on Thursday has been surpassed and the close has been above this level. The intraday levels for the Nifty spot in the coming session will be between 3454.24 on the upside and 3396.06 on declines. |
| In case the Nifty gyrates beyond these points, expect the spot index to test 3481.69 level on the upsides and 3368.61 on declines. Traded volumes and the market breadth will remain the crucial short-term indicators of the immediate trend. |
| The outlook for the markets on Tuesday is that of cautious optimism as the bulls are expected to support the markets on declines, aided by bear covering on declines, thereby cushioning falls. |
| Technology stocks will continue to rule the roost and stock specific activity is likely to be seen on TCS which is likely to provide short-term trading opportunities to bulls. Buying is recommended in the cash and derivatives segment in small lots.
Vijay L. Bhambwani |
| Mandatory disclosure: the analyst has exposure to TCS mentioned above. |
Bulls to come in play on declines
TECHNICALS
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First Published: Apr 18 2006 | 12:00 AM IST
