The markets rallied from intraday lows as I had advocated that the charts indicated support at Japanese Ichimoku charts.
The primary trigger for buying at lower levels was the impeding expiry of the November series, which has historically been a short-squeeze period in market activity.
The market breadth was negative as the BSE figures were 1,060 : 1,382. The turnover was subdued for a Monday and that is a sign of caution at higher levels.
The markets have ended the session in the upper end of the intraday band and that was accompanied by dull market internals.
These are routine patterns ahead of the expiry. The intraday range advocated for Monday at the 2,830-2,590 levels held as the Nifty spot gyrated within these levels.
The coming session is likely to witness a range of 2,775 on advances, beyond which the 2,810-level may be possible. Declines will test the 2,640-level and volumes need watching, especially on upthrusts. The bullish pivot for the session will be at the 2,700-mark and the bearish pivot for the session will be at the 2,670-mark.
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The outlook for the market on Tuesday is that of continued optimism as the pre-expiry bear squeeze is likely to persist and limit the draw down. Should the overseas cues be positive, expect bullishness on Tuesday.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
The author is a Mumbai based investment consultant