| The markets opened on a positive note and proceeded to build up upward momentum through the day. |
| The benchmark indices gained almost 2.5 per cent as the previous day's losses were more than recouped on massive short-covering. Traded volumes were higher than the previous session, which makes the upmove more credible. |
| The market breadth was highly positive as the BSE and NSE combined figures were 2481 : 1147 and the capitalisation of the breadth was also positive as the figures on a BSE and NSE combined basis were Rs 12723 crore : Rs 1550 crore. |
| The derivatives data for the previous session indicated a 1 per cent increase in net long positions as bulls persisted in buying at lower levels, albeit in smaller lots. |
| The indices have closed at the higher end of the intraday range as the buying momentum persisted till the fag end of the session. That the volumes were higher, adds to the upward momentum. |
| The 3893 resistance specified for Thursday was conclusively overcome as the closing was far higher than this level. The coming session will witness an intraday range of 4002 on advances, should the upmove extend itself on Friday. Declines will witness support at the 3972 level on declines. |
| Bulls are likely to prevail over bears as long as the average traded price of the Nifty current month futures trade above the 3907 level throughout the day. |
| Keep monitoring open interest and traded volumes on the fly if you are an online trader. Should the upmove be accompanied by higher volumes and open interest, trade long for the day. |
| The outlook for Friday is that of guarded optimism as the weekend factor seems to be the only point of caution in the absolute short term. Barring routine profit sales, the outlook seems to be favouring the bulls for now.
Vijay L. Bhambwani |
| Mandatory disclosure: the analyst has no exposure to the scrips mentioned above. |
Routine profit sales in the offing
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First Published: Jan 12 2007 | 12:00 AM IST
