Profit booking at higher levels
TECHNICALS
| The market breadth was negative as the BSE and NSE combined figures were 1,991 : 1,414 and the capitalisation of the breadth was positive as the figures on a BSE and NSE combined basis were Rs 12,721 crore : Rs 1,495 crore. |
| The F&O figures for the previous session point towards continued buying as the open interest rose with a fall in the PCR. |
| The indices have managed to close at the higher end of the intra-day band and that too after trading higher throughout the session. |
| Though the traded volumes remained truncated (partly due to the weekend factor) and the market breadth was negative, the upward momentum may last as the short covering is intense. |
| The short squeeze will be responsible for cushioning the falls in the markets and this hypothesis has been repeatedly advocated in the recent days. |
| The intra-day levels for the Nifty will be at the 3,221.44 level on the upsides and the 3146.36 level on the declines in the coming session. Traded volumes and market breadth must be monitored closely for the sustainability of the uptrend. |
| The outlook for the markets on Monday is that of continued optimism, though routine profit sales may be seen at higher levels. The sectoral shift is likely to continue and the beneficiaries maybe technology and power sectors. |
| Stock-specific activity is likely to be seen on I-Flex, which will encounter support at the 1,188 levels and as long as it remains above this threshold, the upsides are expected to test the 1,234-1,240 levels in the near term. Higher risk traders may initiate buying in small lots in the cash and derivatives segment. Vijay L. Bhambwani |
| SEBI disclosure: the analyst has no exposure to the scrips mentioned above. |