| The markets opened on a firm note and proceeded to trade higher through the day. The benchmark indices consolidated through the session but managed to hold above the previous day's close. |
| The traded volumes were higher than the previous session, which indicates a higher trader participation. |
| The market breadth was marginally negative as the BSE and NSE combined figures were 1579 : 1836 and the capitalisation of the breadth was positive as the figures on a BSE & NSE combined basis were Rs 9193 crs : Rs 3209 crs. |
| The F&O data for the previous session indicates a marginal build up of fresh long positions as the bulls are reticent at higher levels. The PCR has climbed and that indicates a rising short interest at higher levels. |
| The indices have closed at the upper half of the intraday range and the closing is at the 15-week highs. That is a sign of optimism and traded volumes have been progressively higher. |
| Barring the poor market breadth which indicates selling by retail players, the outlook appears to be optimistic. As I had advocated yesterday, the intraday correction was seen as bull market corrections are invariably short lived. |
| The 3488 resistance specified for Thursday has held as the intraday high was 3484. The coming session will witness resistance at the 3489 then the 3508 levels in case of advances. Lower levels will witness support at the 3453 levels on an intraday basis. |
| The outlook for the markets on Friday is that of optimism as the bulls are appearing to be on a firm footing and the lower levels are likely to witness short covering and fresh buying. Being a weekend session, large-scale build of fresh positions may not be seen, traded volumes may pick up. Avoid shorts for now.
Vijay L. Bhambwani |
| SEBI disclosure: the analyst has no exposure to the scrips mentioned above. |
Traded volumes on the rise
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First Published: Sep 15 2006 | 12:00 AM IST
