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| Optimism to continue today | |
| TECHNICALS | | Vijay Bhambwani / Mumbai January 02, 2009, 0:10 IST | |
Markets welcomed the New Year on a cheerful note as indices gained on the back of bullishness in technology and mid-cap stocks. The benchmark indices gained over 2 per cent at close. The traded volumes were lower compared to the previous session, which is a routine indicator on a New Year day session. The market breadth was positive as the Bombay Stock Exchange (BSE) and the National Stock Exchange’s (NSE’s) combined advance decline ratio was 3,053:655. The capitalisation of the breadth was positive as the BSE and NSE combined figures were Rs 9,754 crore:Rs 344 crore.
The Sensex and the Nifty have closed in the upper end of the intraday range and on positive market internals. The traded volumes are indicating a truncated participation along expected lines. The intraday range specified for Nifty for Thursday at 2,882/3,045 held. The charts indicate a breakout past the 3,000 congestion level and a close above this threshold. The coming session is likely to witness a range of 3,090 on advances and 2,980 on declines. As long as the Nifty spot remains above the 3,000-level, expect the outlook to be positive. Conversely, below the 2,980-level, bears are likely to attempt a drawdown.
Market internals indicate a lower turnover as participation levels fell due to the festive undertone. The number of trades decreased and the average ticket size was lower, indicating a weaker buying bias.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)
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