Business Standard

Technicals: Guarded optimism can win the day

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Vijay Bhambwani Mumbai

The markets turned on a dime on the expiry day as the late selling eroded sentiments on the back of overseas cues. The traded volumes were marginally lower on the back of poor participation on account of festivities as well as a lack of conviction.

The market breadth was marginally negative as scepticism was all too evident on advances. The F&O data also reflected the dull participation as the focus was on the expiry-related transactions.

The indices have closed in the lower end of the intraday band and that too on lower turnover and tepid internals. These are indications of retail withdrawal, probably on account of financial constraints. The 2,790-2,525 range specified for Wednesday has held as the Nifty retraced from the specified resistance and stayed above the support level advocated.

 

That indicates a rising short-term range. The coming session is likely to witness a range of the 2,800 level on advances and 2,600 on declines. The bulls will need to keep the Nifty spot trading above the 2,655 levels to stay in command.

The outlook for the coming session is that of guarded optimism, should the overseas markets stay firm. Expect the domestic sentiments to improve. Long-term investors may continue bargain buying for the long term.

The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com

Mandatory disclosure: The analyst has no exposure to any scrip recommended above.

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First Published: Oct 30 2008 | 5:48 PM IST

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