The markets opened on a tentative note and ended with gains as the players shrugged off the nervousness on the geo political front, backed by overseas cues. The benchmark indices gained about 2 per cent at close. The traded volumes were higher as compared to the previous session, which is a positive indicator on an uptick session.
The market breadth was positive as the BSE & NSE combined advance decline ratio was 1961:1611. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 10,766 cr:Rs 1,001 cr.
The indices have closed in the upper end of the intraday range and on positive market internals. These are signs of support at declines. The intraday range specified for Monday at the 2925/2760 held as the Nifty scaled the 2931 levels. The oriental chart indicates a bullish "daki" pattern which has near term positive implications, provided follow up buying is seen.
The coming session is likely to witness a range of 3015 on advances and 2825 on declines. As long as the Nifty spot remains above the 2895 levels, expect the outlook to be positive. Conversely, below the 2850 levels, the bears are likely to attempt a comeback in the absolute near term.
The outlook for the markets on Tuesday is that of guarded optimism as the overseas cues, especially West Asia may impact the near term sentiments. Desist from pressing shorts for now.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)