| The markets opened on a steady note ended Tuesday with minor losses as bulls displayed a lack of buying conviction at higher levels. |
| Traded volumes were marginally higher than in Monday's session, but was in line with the 10-day average. |
| The breadth was negative for the second day in a row as the ratio of advances to declines on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined stood at 1186 : 1428. |
| The capitalisation of the breadth, Rs 3,599 crore (advances) : Rs 3,154 crore (declines) was marginally positive. Derivatives data available for the previous session indicate a slow build-up of long positions. |
| The indices have closed marginally lower than the threshold levels as the Nifty has failed to end above 1640 levels. |
| The BSE Sensex needs to close above 5224 to signal a convincing buy. The support on the lower side will be at 1615 levels on the NSE Nifty on an intra-day basis and as long as the index stays above this level, the upmove will remain intact. |
| Traded volumes need to perk up on the bullish days with broader buying. |
| The outlook for the markets on Wednesday is of cautious optimism as the short-term correction may see some more consolidation before a decisive move occurs in either direction. |
| The index heavyweights will determine the trend in the coming days. Keep a watch on Reliance, Infosys, ONGC and ITC direction guidance. |
| I advocate buying Satyam Computer as the scrip has signalled a breakout from the six-month channel. Buying can be in the cash and derivatives segments. Traded volumes must be curtailed due to the higher volatility expected.
Vijay Bhambwani |
| Sebi disclosure: The analyst has no exposure to the scrips mentioned above. |
The broader buying imperative
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First Published: Aug 04 2004 | 12:00 AM IST
