Technical Analyst, Vijay L Bhambwani, CEO of BSPLindia.com :
The markets commenced trade with trepidation and ended the session with jubilation, albeit on lower volumes. The market breadth was positive as the BSE & NSE combined figures were 2084 : 1770. The capitalisation of the breadth on a commensurate basis was positive too as the figures were Rs 15653 Crs : Rs 3278 Crs. The turnover was lower as the bulls displayed a lack of buying conviction at higher levels. The f&o figures for the session indicated a lower turnover as the traders failed to offer adequate follow up buying.
The indices have closed at the upper end of the intraday range as the sentiments were optimistic on overseas cues and bear covering at lower levels. The lower cash turnover indicated a short squeeze to be the primary force behind the upthrust. The intraday range advocated for Wednesday at the 4880 / 5030 held as the Nifty traded within these thresholds. The coming session is likely to witness a range of 5070 on advances and 4950 on declines. The 4990 level will be a bullish pivot for Thursday above which the players may expect optimism - provided volumes accompany upmoves.
The market internals indicate a lower turnover as the participation levels fell. The number of trades decreased and the average ticket size was lower, indicating a weaker buying bias. The capitalisation of the market was higher in line with an uptick session.
| NSE figures |
May 13, 2008 |
May 14, 2008 |
Change |
| Turnover Rs Crs |
14,271.22 |
12,731.96 |
(-) 1,539.26 |
| Number of trades |
55,02,139 |
50,86,927 |
(-) 4,15,212 |
| Capitalisation Rs Crs |
52,42,250 |
52,94,759 |
50,509 |
| Average value per trade - Rs |
25,938 |
25,029 |
(-) 909 |
The outlook for the markets on Thursday is that of guarded optimism as the bulls are likely to attempt fresh upmoves provided overseas cues are positive / neutral.
Mandatory disclosure -the analyst has no exposure to any scrip/s recommended above.
Online
-165.27 -1.11%