The bourses opened the new week on a firm note and ended Monday with net gains.
The Bombay Stock Exchange (BSE) sensex closed at 2975.47 (up 08.84 points) and the National Stock Exchange (NSE) Nifty 50 ended at 945.40 (up 07.10 points).
The market breadth was positive as the advances to declines figures on the two exchanges combined stood at 1482:617.
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Traded volume on the BSE stood at Rs 978 crore, while on the NSE it was much higher at Rs 2,363 crore.
The capitalisation of the market breadth was also very positive with the numbers being Rs 2,971 crore: Rs 354 crore on the two bourses combined.
Traded volume has shown a pick-up, which is a positive indicator as the breadth has been bullish on greater participation.
The indices have managed to climb for the fifth day in a row and the oscillators are supporting the upmove.
The markets are likely to see some more gains before a correction sets in. The Nifty will see resistance at the 960 levels.
The outlook for Tuesday is one of optimism as the bourses are likely to see increased retail participation in the coming days.
If the traded volume continues to rise in tandem with the indices, the rally will gain strength.
Among shares, Bharat Electronics is trading in a new zone where upward resistance is negligible.
Small buying maybe resorted to at the current levels with a 2 per cent stop-loss.
Digital Global, after surpassing Rs 550 levels, is likely to see appreciation up to the Rs 570 mark. Buying is recommended for short term traders.
Information technology education major NIIT is in a bull grip after Rs 132 levels have been surpassed. The stock is likely to tap Rs 145 - Rs 148 levels soon.
Traded volumes can be increased gradually on the long side.
Vijay Bhambwani
CEO, BSPLindia.com
The author is a Mumbai-based investment consultant and invites feedback at vijay@bsplindia.com.
Sebi disclosure: The author has no exposure to any securities mentioned above.