| The markets saw a see-saw trading session as bulls and bears wrested control of the sentiments. The much-awaited correction finally set in as the higher levels could not be sustained owing to selling by nervous bulls. |
| The traded volumes were higher compared with the 10-day average and the market breadth was negative as the BSE & NSE combined figures were 870 : 2095. |
| The capitalisation of the breadth was negative as the combined exchange figures were Rs 4101 crore : Rs 5507 crore. The derivatives figures available for Monday's session show an increase in outstanding long positions by about Rs 2,000 crore. That is a sign of comfort as there is a buying support at lower levels. |
| The indices have retraced from their significant points in the ongoing rally as the Nifty finds resistance at the 1920 and the Sensex at 5920 levels. |
| It is important that the indices close above these short term resistance points that too with convincing volumes and positive market breadth to signal a fresh run upwards. |
| On the downsides, expect support at the 5750 and the 1858 levels in the near term. The boost is likely to come from the oil and gas sector in the near term and technology may also bring up the rear in the short term owing to pre-result build-up in positions. |
| The outlook for the markets on Wednesday is that of cautious optimism as the profit taking may last for a few sessions as the markets have appreciated significantly in the last fortnight. |
| However, being a bull market, we do not expect the corrective fall to last too long. Volatility maybe very high though. |
| Stock specific activity is likely to be seen in: |
| Reliance: This counter is leading the rally from the front as I have been advocating in the past. The immediate target for the scrip is 600 in the near term and short term support exists at 550-555 levels. |
| Declines should be used as entry points for the patient trader. Buy in the cash and derivatives segment in small lots.
Vijay L Bhambwani |
| SEBI disclosure: the author has no outstanding positions in any of the stocks mentioned above. |
Tata Power shining on sector bloom
DALAL STREET SPIKES
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First Published: Dec 31 2003 | 12:00 AM IST
