The markets celebrated multiple positive triggers of the nuke deal and the bailout of US financial institutions with gusto. The headline indices gained almost 4 per cent at close. The markets breadth was positive as the combined exchange figures were 2,448: 1,466.
The capitalisation of the breadth on a commensurate basis was also positive as the buying momentum persistent till the fag end of the session. The stagnant volumes indicate a limited participation by the retail segment due to a gap-up open.
The 4,510-4,360 range specified for Monday was overcome as the Nifty surpassed the resistance specified. The western charts indicate an ascending triangle formation, which signals a breakout once the 4,650 level is overcome forcefully. The coming session is likely to witness a range of 4,610 on advances and 4,360 on declines The bulls will need a consistent trade above the 4,480 pivot to extend their new-found initiative.
The market internals indicate a higher turnover as the participation levels rose due to the upthrust. The number of trades decreased and the average ticket size was higher, indicating a weak buying bias. The capitalisation of the market was higher in line with an uptick session.
Vijay L. Bhambwani
(CEO – BSPLindia.com)
The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.
