| The benchmark indices gained over a per cent to close at new five-and-a-half month high. |
| The traded volumes were significantly higher than in Monday's session, which is a positive indicator. |
| The market breadth was positive as the ratio of advancing to declining shares on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined stood at 1719 : 1157. |
| The capitalisation of the breadth was also highly positive with the figures on the two bourses taken together standing at Rs 5,469 crore (advances) : Rs 852 crore (declines). |
| The indices have surged higher with positive breadth and higher volumes as the bulls have lent support at lower levels. |
| The bears have added to the upward impetus as the higher levels are forcing them to trigger stop-losses and pare exposure ahead of expiry. This trend is likely to continue and would be the biggest reason for bullish sentiment to prevail for now. |
| The downsides are likely to be limited as the bears will cushion the falls. Support on an intra-day basis is likely at the 1736 and the 5572 levels on the Nifty and the Sensex, respectively. |
| On the higher side, expect resistance at the 1768 and the 5645 in the coming session. The traded volumes need to be monitored for signs of trend determination in the coming days. |
| The outlook for Wednesday is of optimism as the bulls are unlikely to surrender the initiative. |
| The bears are likely to cause the upward momentum to accelerate in the coming days and the index heavyweights will boost the markets. |
| Among stocks, Reliance Industries is likely to witness a breakout once the Rs 512 levels have been overcome with higher volumes. |
| Hereon, the scrip goes into a low-resistance zone and is likely to zoom higher in the short term. Buying is recommended with a 1 per cent stop-loss in the cash and derivatives segments. Vijay L Bhambwani |
| Sebi disclosure:- The analyst has no exposure to the scrips mentioned above. |
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