| The markets opened on a positive note and proceeded to trade higher through the day. The benchmark indices gained almost half a per cent as the expiry related short covering kept the downsides capped. |
| This was along expected lines as the bears tend to square up shorts ahead of the expiry, rather than roll them over. |
| Traded volumes were higher than the previous session as the intraday traders showed a keen sense of participation. |
| The market breadth was marginally negative as the BSE and NSE combined figures were 1576 : 1900 and the capitalisation of the breadth was positive as the figures on a BSE & NSE combined basis were Rs 11067 cr : Rs 6426 cr. |
| The F&O data for the previous session showed a continued buying momentum as the net fresh long positions went up by over 2.5 per cent. The risk appetite was clearly higher. |
| The indices are showing a support base at the 13 day SMA's and that is a sign of optimism. The 3948 resistance specified for Thursday was comfortably overcome as the closing was clearly above this threshold. The intraday range was seen rising as the support specified at the 3908 was not even tested on an intraday basis. |
| The coming session is likely to witness intraday levels of 3982 on advances and 3928 on declines. |
| Traded volumes and open interest must be monitored in the coming few sessions to gauge the money flow and commitment of traders in the new settlement as prices climb higher. |
| The outlook for the markets on Friday is that of continued optimism as the undertone remains positive and the weekend session will witness guarded buying support from the bulls. Barring any unforeseen news flow and routine bull market profit sales, the session should witness buoyancy.
Vijay L. Bhambwani |
| Mandatory disclosure - the analyst has no exposure to the scrips mentioned above. |
Shorts squared, buoyance seen ahead
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First Published: Dec 01 2006 | 12:00 AM IST
