Minor profit sales likely on advances

TECHNICALS

The market breadth was positive as the combined exchange figures were 3021:926. The capitalisation of the figures on a commensurate basis were also positive as the numbers were Rs 14238 crore:Rs 4066 crore.

The indices have closed at the upper end of the intraday range and the positive market internals indicate an optimistic undertone. The 4900 / 5020 range advocated for Monday was tested on the upside even as the bottom was inviolate.

That indicates a rising daily range, confirming our recent view that the oriental charts were pointing towards a "koten" formation.

The coming session is likely to witness a range of 5100 on advances and 4970 on declines. Should the 5000 not be violated forcefully, expect the optimistic undertone to persist.

The market internals indicate a marginally lower turnover as the participation levels fell slightly. The number of trades decreased and the average ticket size was lower, indicating a lower buying bias. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets on Tuesday is that of guarded optimism. Expect minor profit sales on advances.

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.