The market breadth was positive as the combined exchange figures were 3021:926. The capitalisation of the figures on a commensurate basis were also positive as the numbers were Rs 14238 crore:Rs 4066 crore.
The indices have closed at the upper end of the intraday range and the positive market internals indicate an optimistic undertone. The 4900 / 5020 range advocated for Monday was tested on the upside even as the bottom was inviolate.
That indicates a rising daily range, confirming our recent view that the oriental charts were pointing towards a "koten" formation.
The coming session is likely to witness a range of 5100 on advances and 4970 on declines. Should the 5000 not be violated forcefully, expect the optimistic undertone to persist.
The market internals indicate a marginally lower turnover as the participation levels fell slightly. The number of trades decreased and the average ticket size was lower, indicating a lower buying bias. The capitalisation of the market was higher in line with an uptick session.
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The outlook for the markets on Tuesday is that of guarded optimism. Expect minor profit sales on advances.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.