The markets reacted expectedly to the global cues as the benchmark indices gained over 2 per cent amid higher traded volumes. The advance decline ratio on a BSE & NSE combined basis was highly positive as the figures stood at 2778 : 945.
The capitalisation of the breadth on a combined exchange basis too was positive as the figures were Rs 12926 crs : Rs 1969 crs.
The F&O data for Tuesdays session indicated a 2.75 per cent increase in net long positions on lower traded volumes and a marginal fall in the Nifty PCR.
The indices have closed at the upper end of the intraday spectrum, that too on higher volumes and a positive PCR. The intraday range specified for Friday at the 4397 / 4315 levels was easily stretched on the upsides as the bulls persisted in their buying till the fag end of the session.
For intraday traders, a minor red flag is the inverted hammer on the 60 minute chart of the Nifty Aug futures. Should the Nifty manage to trade above the intraday high of Wednesday, this concern will be conclusively overcome.
The coming session is likely to witness an intraday range of 4535 on advances and 4390 on declines. Keep a keen eye on the market internals, especially the volumes and the correlation between the average traded price and the last traded price every hour. These equations will hold the key to the near term trends for the short term players.
The outlook for the session on Thursday is that of continued optimism subject to the Nifty spot managing to remain above the 4430 consistently. This threshold may be utilised as a protective stop-loss for long positions.
The overseas cues too will have a bearing on the near term trend determination. I remain of the opinion that shorts should still be avoided as advocated in the last few days.
The capitalisation of the breadth on a combined exchange basis too was positive as the figures were Rs 12926 crs : Rs 1969 crs.
The F&O data for Tuesdays session indicated a 2.75 per cent increase in net long positions on lower traded volumes and a marginal fall in the Nifty PCR.
The indices have closed at the upper end of the intraday spectrum, that too on higher volumes and a positive PCR. The intraday range specified for Friday at the 4397 / 4315 levels was easily stretched on the upsides as the bulls persisted in their buying till the fag end of the session.
For intraday traders, a minor red flag is the inverted hammer on the 60 minute chart of the Nifty Aug futures. Should the Nifty manage to trade above the intraday high of Wednesday, this concern will be conclusively overcome.
The coming session is likely to witness an intraday range of 4535 on advances and 4390 on declines. Keep a keen eye on the market internals, especially the volumes and the correlation between the average traded price and the last traded price every hour. These equations will hold the key to the near term trends for the short term players.
The outlook for the session on Thursday is that of continued optimism subject to the Nifty spot managing to remain above the 4430 consistently. This threshold may be utilised as a protective stop-loss for long positions.
The overseas cues too will have a bearing on the near term trend determination. I remain of the opinion that shorts should still be avoided as advocated in the last few days.
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