Near-term outlook seems bright

TECHNICALS

BS News

Vijay Bhambwani / Mumbai February 5, 2008

The markets opened with a bang and proceeded to end higher after some profit sales in the second half of the session. The traded volumes improved marginally over the previous session and the market breadth was highly positive.
The combined exchange advance decline ratio stood at 3304:696 and the capitalisation of the breadth was also positive as the commensurate figures were Rs 12397 crore: Rs 1190 crore.
The indices have closed at the upper end of the intraday range and that too on positive market internals. The mildly higher volumes can partly be attributed to the scepticism in the retail camp.
The 5470 / 5160 range specified for Monday was overcome on the upsides as the bulls prevailed over the bears. The coming session is likely to witness an intraday range of 5320 / 5605. Watch the traded volumes above the 5460 pivot level as the bulls may attempt a fresh upthrust.
The market internals indicate a higher turnover as the participation levels rose marginally. The number of trades increased and the average ticket size was lower, indicating the absence of stronger hands.
The outlook for the markets on Tuesday will be that of continued optimism and barring the overseas cues, the near term outlook appears optimistic.