Business Standard

Bulls continue to hold reins


Vijay L. Bhambwani  |  Mumbai 

The opened on a firm footing and proceeded to trade higher through Monday's session.
The benchmark indices settled in record territory as bulls expectedly held on to their initiative and controlled the sentiment.
The traded volumes were in line 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 taken together stood at 2432 : 743.
The capitalisation of the breadth was also positive as the figures on the two exchanges combined stood at Rs 8,674 crore (advances): Rs 638 crore (declines).
F&O data for the previous session show a strong buying support from bullish quarters.
The indices have yet again surged into record highs and are in uncharted territory where no recorded resistance levels exist.
The only way to compute the upsides would be to plot the time / price action charts and the wave theory.
The immediate resistance on the upsides will be seen at 2124-2128 levels and 6718-6725 levels on the Nifty and Sensex, respectively.
The support on the downsides will be seen at 2089 and 6652 on the Nifty and the Sensex, respectively, on an intra-day basis in the coming session.
The boost is likely to come from the energy, power, textiles and automobile counters.
The outlook for Tuesday is of optimism as the bulls are likely to remain in charge.
Bears will be forced to cover their shorts and cushion the falls, if any.
The downsides are likely to be limited and typical bull market corrections are short lived.
Among shares, activity is likely to be seen in HPCL and BPCL, which have signalled breakout from their short-term congestion levels.
Further 2-4 per cent upsides cannot be ruled out 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, January 04 2005. 00:00 IST