| |
| The Bombay Stock Exchange (BSE) Sensex ended at 3721.65 (up 35.31 points) while the National Stock Exchange (NSE) S&P CNX Nifty 50 ended the day at 1168.75 (up 08.90 points).
|
| |
| The market breadth was positive as the ratio of advances to declines on the two exchanges taken together stood at 1761: 816.
|
| |
| Traded volume on the BSE was Rs 1,390 crore, while on the NSE it was more than twice that at Rs 3,353 crore.
|
| |
| The capitalisation of the market breadth was highly positive as the numbers were Rs 4,248 crore: Rs 485 crore on the two bourses combined.
|
| |
| The buying pattern today hints at purchasing frenzy by both the institutional and the retail players.
|
| |
| That is indicative of underlying strength.
|
| |
| The indices are inching towards their congestion levels at 1185/1190 and 3760 on the Nifty and the Sensex, respectively.
|
| |
| The traded volumes have been below normal though the rally has been sharp.
|
| |
| Traders need to watch the price / volumes combination for clues towards the short-term outlook.
|
| |
| The outlook for Thursday is one of cautious optimism as the bulls seem to be regaining control of the markets after a brief correction.
|
| |
| Buying is likely to be concentrated around index heavyweights and large-cap stocks because foreign institutional investor buying is likely to continue.
|
| |
| Among stocks, Gujarat Ambuja Cements is likely to go into a low resistance zone above Rs 210 levels and is a market outperformer.
|
| |
| Buy in the derivatives and cash segments in a firm market, especially above Rs 210 levels.
|
| |
| I expect a 5 per cent appreciation in the near term.
|
| |
| Reliance is likely to turn distinctly bullish above Rs 346 levels.
|
| |
| The oscillators are supporting the rally and the market is likely to see this scrip leading the bull run from the front.
|
| |
| Expect Rs 355 or higher in a conducive market. Buy in the cash and derivatives segment.
|
| |
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. |
| |
