Upmove likely to sustain

TECHNICALS

Taking up where they left off, the bulls managed to extend their previous sessions' gains. Qualitatively speaking, the upthrust was an improvement over the previous session as the traded volumes were higher compared to the previous session.

The market breadth was positive as the combined exchange figures were 3227 : 875. The capitalisation of the breadth was also positive as the commensurate figures were Rs 20,991 crs : Rs 2,062 crs.

The F&O data for the session indicates a 3.16 per cent increase in net long positions "� a positive phenomena ahead of the F&O expiry.

The bulls were clearly in command as the buying momentum was sustained till the end of the session and the market internals were positive. The 6120 resistance specified for Wednesday was not tested as higher levels witnessed routine profit sales as was advocated yesterday.

The coming session is likely to witness an intraday range of 6130 on advances and 6011 on declines. Note the support is now at the previous significant high inflection point as per Delta studies. As long as the bulls manage to keep the Nifty spot above this threshold, expect the uptrend to sustain itself.

The outlook for the markets on Thursday is that of continued optimism. Barring overseas cues and routine profit sales, there is little threat perception for the upmove.

Vijay L. Bhambwani
(CEO- BSPLindia.com)

The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com or ( 022 ) 23438482 / 23400345.

Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.