After opening on a brittle note, the bourses wrapped up the week with significant gains.
The Bombay Stock Exchange (BSE) Sensex ended the day at 3499.50 (up 44.90 points) and the National Stock Exchange (NSE) Nifty 50 closed at 1100.25 (up 07.70 points).
The market breadth was positive as the advances to declines figures on the two exchanges combined stood at 1346 (advances) : 1175 (declines).
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Traded volume on the BSE stood at Rs 1,151 crore, while on the NSE it was more than twice that number at Rs 2,907 crore.
The capitalisation of the market breadth was also in positive territory with the numbers being Rs 3,063 crore: Rs 988 crore on the two exchanges taken together.
The breadth both in numerical and capitalisation terms is heartening, but traded volumes have spun lower, which is a cause for concern.
This shows a lack of conviction on the part of buyers at higher levels. The players are watching 1106-1107 levels on the Nifty very carefully as the index had reversed from these levels earlier.
The outlook for the trading session on Monday is that of optimism as the indices have closed at their psychological highs and any closing above these levels for 2-3 consecutive days will result in a further run upwards.
But remember, consecutive closes are required and that too with higher volumes.
The markets are in a desperate need of a correction. Therefore, long positions should be initiated carefully.
Among stocks, Reliance Industries