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| Traded volume, which was lower than the 10-day average, is the persistent worry as the markets have risen on lower volumes compared with the volumes seen during the decline.
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| In the coming days, every investor or trader has to watch both the price and volume. Should the indices rally with increasing volumes, the markets are on course for a fresh uptrend.
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| The outlook for Tuesday is of optimism as the Nifty has surged above its short-term congestion zone and is headed towards the 1,254 level, which is the next minor halt. On the lower side, expect support at the 1,212 level in the immediate future.
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| On Tuesday, the upward push will come from old-economy counters, especially automobiles, steel, pharmaceuticals, cement, oil & gas.
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| Technology stocks will continue to underperform the market as the short-term charts are showing a rapid fall in short-term relative strength.
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| Among stocks, activity may be seen at the State Bank of India counter. The shares have risen for the third consecutive day on higher volumes.
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| And any closing above the Rs 436 level for one or two sessions will see a faster upward momentum. The possibility of the Rs 445 level being reached is fairly high.
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| ONGC is in a major uptrend as a short-term downward sloping channel, which is now a confirmed bullish flag formation.
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| Once the shares of the oil major close above Rs 525, it indicates the share is in a low-resistance zone and is likely to see a 5 per cent appreciation in a conducive market.
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Vijay Bhambwani
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| (CEO,BSPLindia.com)
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| The author is a Mumbai-based investment consultant and invites feedback at vijay@bsplindia.com
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| SEBI disclosure: The author has no exposure in any securities mentioned above. |
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