Bull sway likely to continue

TECHNICALS

The traded volumes were lower compared with the previous session's volumes, as the weekend considerations kept participation levels subdued. The market breadth was positive as the BSE and NSE combined advance decline ratio was 2,565:1,245. The capitalisation of the breadth was also positive as the commensurate figures were Rs 15,471 cr:Rs 2,146 cr.

The indices have closed at the upper end of the day's spectrum with the market internals remaining positive. The bulls came back with strength in the latter half of the session as the inflation numbers were less of a blow than widely expected.

The 3,775-4,035 range advocated for Friday has held as the Nifty topped out at that threshold. The coming session is likely to witness a range of 4,100 on advances and 3,930 on declines. The Nifty spot will have to remain above the 3,980 levels consistently on Monday to remain with the bulls.

The market internals indicate a lower turnover as the participation levels fell due to the weekend factor. The number of trades increased and the average ticket size was lower, indicating a milder buying bias. The capitalisation of the market was higher.

The outlook for the markets on Monday is that of cautious optimism as the bulls are likely to remain in charge and extend their new-found initiative.

Vijay L. Bhambwani
(CEO- BSPLindia.com)

The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com

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