Powered by the banking and midcap stocks, the benchmark indices gained up to 5 per cent even as the traded volumes expanded. On an uptick session, that is a welcome sign for the bulls. The market breadth was positive as the BSE advance decline ratio stood at 1503:668, which makes the upmove better than the previous session in qualitative terms. The correlation between the average traded prices vis-a-vis the last traded prices showed a buying momentum till the end of the session.
The indices have closed at the upper end of the intraday range and that too on better market internals. These are indicators of optimism in the near term. The 2745/2600 range advocated yesterday was overcome on the upside which indicates a breakout of a congestion band.
The “juji” pattern advocated yesterday as being a precursor of a bigger move in the pipeline did not disappoint the bulls. The coming session is likely to witness a range of 2885 on advances and 2700 on declines. The bullish trigger for the coming session will be the 2745 mark above which the bulls will retain control of the session.
The outlook for the coming session is that of continued optimism, subject to overseas cues remaining neutral/positive. Unless compelling evidence supports a bearish view, desist from selling short.
Vijay L Bhambwani (Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)
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