| The benchmark indices gained approximately 0.5 per cent in the process. Traded volumes were significantly lower than the previous session which shows a lack of conviction among the bulls. |
| The market breadth was positive as advancing shares handily outnumbered declining ones on the Bombay Stock Exchange (BSE) and the National Stock Exchange combined at 1752 : 1136. |
| The capitalisation of the breadth was also positive as the figures on the two bourses taken together stood at Rs 3,472 crore : Rs 1,131 crore. The indices are still within their channels and need to clear their previous tops before a conclusive buy call can be given. |
| The immediate resistance on the indices will be seen at 1815 and 5745 levels on the Nifty and the Sensex, respectively. These are the short-term trend determining levels that traders need to watch out for on Tuesday. |
| On the lower side, expect support at 1777 and 5676 on the Nifty and the Sensex, respectively, in the coming session. |
| It is crucial that rallies, if any, should be accompanied by higher volumes, which will bring back retail participation. The outlook for the markets on Tuesday is that of cautious optimism, though profit sales may be seen at higher levels from the short-term bulls. |
| Action is likely to be seen in technology, pharmaceutical, metals and select automobile stocks. I continue to advocate a |
| short combination on the Nifty in the near-month series in small lots. Vijay L. Bhambwani |
| Sebi disclosure: the author has no outstanding positions in any of the stocks mentioned above. |
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