The markets opened on a positive note and ended with strong gains as the bulls built up on the initial momentum with follow-up buying. The benchmark indices gained nearly 3 per cent at close.
The traded volumes were marginally higher as compared to the previous session, but low for the first day of the week, which is an indication of limited retail participation.
The market breadth was positive as the BSE & NSE combined advance decline ratio was 2380:1275. The capitalisation of the breadth was also positive as the combined figures were Rs 9,486 cr:Rs 696 cr.
The indices have closed in the upper end of the intraday range and were accompanied by positive market internals. The abysmal turnover remains a cause for concern as the participation seems to be half-hearted. The bullish charge was led by the banking segment and was primarily due to a short squeeze. The 2900/2780 levels advocated a range for Monday was overcome as the Nifty closed above the resistance specified.
The coming session is likely to witness a range of 3000 on advances and 2830 on declines. As long as the Nifty trades above the 2900 levels, the bulls are likely to remain in control.
The outlook for the markets on Tuesday is that of continued optimism subject to positive overseas cues and the Nifty spot remaining above the 2900 levels. As long as both these conditions are met, remain long on Tuesday.