| The markets opened on a firm note and proceeded to trade higher through Tuesday. The benchmark indices gained approximately a percentage point as bulls grabbed the initiative from bears. |
| Traded volumes improved compared with Monday's session, which is a positive indicator. |
| The market breadth was highly positive as the ratio of advancing to declining shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined stood at 2.5 : 1. |
| The capitalisation of the breadth was also positive as the index frontline counters saw hectic buying from bulls as well as short covering by bears. |
| The indices have consolidated their gains of the previous session and the extended upmove has improved the market outlook significantly as compared with the last 3 sessions. |
| The immediate hurdle will be at 1824 levels on the Nifty, which was the significant high of the recent upmove. |
| The support on the downside will be seen at the 1794 levels, below which the bears will attempt a comeback. |
| Traded volumes need to improve to signal a conclusive return of the bulls in the near term. The boost is likely to come from the pharmaceuticals, technology and energy stocks. |
| The outlook for the markets on Wednesday is that of continued optimism as the indices have risen from the support provided by the 30-day simple moving average - a classic bull market indicator. |
| Once the 1824 levels are surpassed conclusively with higher volumes, expect the index to trade in a low resistance trading zone. |
| Trades should be initiated on the long side in Maruti, Glaxo and Ranbaxy for short / medium term gains.
Vijay L. Bhambwani |
| Sebi disclosure: the author has no outstanding positions in any of the stocks mentioned above. |
Optimism looms large
TECHNICALS
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First Published: Nov 03 2004 | 12:00 AM IST
