Business Standard

Bull hold on, volume rise crucial


Vijay L. Bhambwani  |  Mumbai 

The opened on a shaky note and proceeded to trade higher through Monday. The benchmark indices gained under a per cent. The traded volumes were steady compared with Friday's session.
The market breadth was highly positive as the ratio of advancing to declining shares on the Bombay Stock Exchange and the National Stock Exchange combined stood at 2030 (advances): 1144 (declines).
The capitalisation of the breadth was also positive as the figures on the two bourses taken together stood at Rs 8,643 crore: Rs 966 crore.
The indices have started their upward march and are likely to test their previous highs as the anticipated correction has been short and typical of bull market dips that are short-lived.
The immediate resistance will be at 2035 and 6445 on the Nifty and the Sensex, respectively, on an intra-day basis in the coming session.
The support on the lower side will be at 2009 and 6374 levels on an intra-day basis.
Traded volumes need to improve on upswing days to lend confidence to the retail players and signal a clear trend determination upwards.
The overall outlook remains bullish. The outlook for Tuesday is of optimism as bulls are likely to retain their hold on trading sentiment. Bear covering is likely to cushion falls and limit the downsides.
Among shares, activity is likely to be seen in Tata Steel, which has signal strength and is likely to surge to Rs 345 levels in the short term. Buying is recommended in the cash and derivatives segments.

Vijay L. Bhambwani
(CEO -

The author is a Mumbai-based investment consultant and invites feedback at or(022) 23438482 / 23400345.
Sebi disclosure: the analyst has no exposure to the scrips mentioned above.

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First Published: Tue, December 21 2004. 00:00 IST