The markets opened on a firm footing and proceeded to trade higher through the day. The benchmark indices gained under 1 per cent to close in "blue sky territory" again. The traded volumes were in line with the previous day's figures. |
The market breadth was highly positive as the BSE and NSE combined figures were 2,219 : 1,256 and the capitalisation of the breadth was also positive as the figures on a BSE and NSE combined basis were Rs 10,719 crore : Rs 3,965 crore. |
The F&O data for the previous session show a 2-per cent increase in open interest as the bulls continued to enhance exposure at lower levels. |
The indices have closed near the intra-day highs, which is a positive indicator, as the bulls have managed to hold on to their initiative till the end of the session. |
The intra-day resistance levels specified on Tuesday at the 3,763.65-levels have proved to be formidable as the Nifty-50 retraced from the 3,758.05-levels. |
It is felt that the coming session will witness intra-day movement between the 3,729.04 and 3,779.46 levels on declines and advances respectively. |
The outlook on Thursday is that of continued optimism, as the bulls are likely to continue buying support at lower levels. |
Short covering at lower levels will cushion the falls and barring routine profit-sales, a major reversal is not apparent as of now. Sectoral strength is likely to be seen on banking, pharmaceutical and metal stocks in the coming few sessions.
Vijay L. Bhambwani |
Mandatory disclosure: the analyst has exposure to Reliance Industries mentioned above. |