Fresh upward impetus likely

TECHNICALS

BS News

Vijay Bhambwani / Mumbai February 6, 2008

The markets opened with some trepidation on the back of overseas cues, but managed to recover by close. The traded volumes were subdued as the intraday range was compressed.
The turnover was also marginally lower as the short-term moves were narrow. The market breadth was positive as the combined exchange figures were 2671:1299.
The capitalisation of breadth was also positive on a commensurate basis as the figures were Rs 12604 crore:Rs 5171 crore.
The indices have closed at the upper end of the intraday range and on positive market internals. The truncated traded volumes can be attributed to the low intraday movement.
The intraday range specified for Tuesday at 5320 / 5605 was not tested in either direction as the sentiment was calm after a big move in the previous session.
The coming session is likely to witness an intraday range of 5430 on declines and 5540 on advances. Watch the traded volumes in case of an upthrust beyond the 5540 levels, which need to spike higher if the bulls are to extend their initiative over the bears.
The outlook for the coming session remains positive and should the overseas cues remain positive/neutral, we expect a fresh upward impetus. Avoid contrarian short selling for now.