Immediate support exists at 6100

TECHNICALS

The markets witnessed profit sales at higher levels as the intraday resistance point advocated yesterday at the 6260 was approached. The Nifty retraced from the 6230 level itself, which indicates a bias towards unwinding by the short term bulls.

The market breadth was marginally positive as the combined exchange figures were 2116:2014. The capitalisation was also positive as the commensurate figures were Rs 21703 crore:Rs 13829 crore.

The indices have closed at the median point of the day, even as the intraday charts indicated a bar reversal as the closing was lower than the opening. Since the intraday high of the Nifty was also the Delta significant high inflection point, the reversal assumes greater significance.

The Japanese chart indicates a "Juji" formation, a sign of caution too. The intraday levels for the coming session are 6240 on advances and 6110 on declines. The 6100 level remains a critical short term support level.

The market internals indicate a higher turnover as the participation levels saw an increase. The number of trades perked up, but the average ticket size was higher, indicating activity by stronger hands.

The outlook for Friday is that of continued optimism, though the overseas cues and the weekend factor may act as short-term dampeners. Cut back on big ticket trades for now.

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.