The markets opened on a positive note and proceeded to log gains after a see-saw session. The market breadth was negative as the combined exchange figures were 762:3134.The capitalisation of breadth was also weak as the commensurate figures were Rs 6451 crore:Rs 8217 crore. The indices have closed at the upper end of the intraday range as the bears covered at lower levels.That the market internals were negative indicated a continued bias towards profit sales on advances. The 4460 / 4690 range specified for Monday was not tested in either direction inspite of higher choppiness. The coming session is likely to witness a range of 4540 on declines and 4680 on advances.The resistance is more or less constant and is assuming significance. Bulls will have to smash past this hurdle convincingly if the upmove is to be credible.The traded volumes below the 4575 levels will determine the strength of the bears as this level is the bearish pivot for the coming session.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 covering bias in the markets by bears / buying by marginal players.The outlook for the markets on Tuesday is that of cautious optimism as the overseas cues will impact domestic sentiments and pre-expiry short squeeze may keep the downsides capped. Big ticket trades must still be avoided.
