The markets opened with a bang and proceeded to zoom higher through the session. The sensex ended the day at 3306.29 (up 76.56 points) and the Nifty 50 ended the day at 1069.80 (up 23.85 ).
The market breadth was positive as the combined figures of advances to declines on both exchanges were at 1423:819 and the traded volumes on the Bombay Stock Exchange were Rs 1,612 crore and Rs 3,213 crore on the National Stock Exchange.
The sensex has signalled a breakout above the previous top and confirmed bullishness, whereas the Nifty 50 is yet to clear the 1077 level where the meltdown occurred recently.
The traded volumes were higher than in the last 10 trading days and the breadth in capitalisation terms was also highly positive.
This is a sign of broad-based buying and strength. The trigger for the rally were the refinery duo Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd which have left open gaps today.
Technology stocks have contributed to the bullishness as was mentioned yesterday that the values have recovered after taking support at the short term moving averages.
The outlook for the trading session on Monday is that of cautious bullishness as many frontline index heavyweights are consolidating higher after completing their corrections.
If Infosys trades above Rs 4,565, the stock can see values of Rs 4,659 and Wipro is bullish above Rs 1,624 only. Tata Engineering is poised to rally above Rs 172.
Reliance is facing resistance at Rs 302, where it has turned lower on past two occasions. As long as the Rs 294 support is not cracked, stay bullish on the scrip. Traded volumes should be thin on Monday as volatility may be higher.
Vijay Bhambwani
(CEO- BSPLindia.com )
The author is a Mumbai based investment consultant and invites feedback at vijay@bsplindia.com
SEBI disclosure :- The author has no exposure in any securities mentioned above.
