Business Standard

Bulls to keep buying at lower levels

TECHNICALS

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Vijay Bhambwani Mumbai
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
(CEO- BSPLindia.com)

The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com  or ( 022 ) 23438482 / 23400345.
 
Mandatory disclosure: the analyst has exposure to Reliance Industries mentioned above.

 
 

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First Published: May 11 2006 | 12:00 AM IST

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