Players may take a shot at fresh buying

TECHNICALS

The markets opened on a nervous note and turned on a dime as the Infosys results turned the tide in favour of the bulls. The traded volumes were higher as the participation levels perked up.

The market breadth was positive as the combined exchange figures were 2,617:1,230. The capitalisation of breadth was also positive as the commensurate figures were Rs 17,053 crore:Rs 2,560 crore.

The indices closed at the upper end of the intraday range as the bulls retained their new found initiative. The positive market internals provide a weight of evidence that the market sentiments are discounting negativity with little or no concern.

Oriental charts are now beginning to indicate a "koten" formation across frontline counters, with implications being bullish.

This coincides with our elliot-based view that the markets are now shifting gears for the better. The 4720 / 4835 range specified for Tuesday was overcome on the upside as buying interest was serious, whereas the initial selling could not violate the projected lows.

The coming session is likely to witness a range of 4750 / 5000. Watch the activity above the 4830 levels, which is the bullish pivot.

The market internals indicate a higher turnover as the participation levels improved. The outlook for the markets on Wednesday is that of optimism as players are likely to attempt fresh buying. Shorting must be avoided for now.

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.