Upmove would hinge on global cues

TECHNICALS

The markets opened on a quiet note and ended with gains inspite of the weekend factor. The traded volumes improved marginally, inspite of being below the recent average volumes. The market breadth was marginally negative as the combined exchange advance decline figures were 1772 : 2059. The capitalisation of the breadth on a commensurate basis was positive as the figures were Rs 9878 crore:Rs 2996 crore.

The indices closed at the upper end of the intraday range as the buying momentum persisted till the fag end of the session. The market breadth and the capitalisation are at divergence, indicating selling by the retail segment on small / medium cap stocks and buying of heavy-weights by the stronger hands. The 4375 / 4180 range advocated for Friday held as the index traded within these parameters. The coming session is likely to witness a range of 4400 on advances and 4270 on declines. If the 4272 level is violated, expect a decline upto the 4190 levels. For the bulls to remain in charge, the Nifty spot must trade above the 4300 level consistently.

The outlook for the session on Monday is that of guarded optimism. Should the overseas cues be positive, expect a small upmove.

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.