The markets opened on a cautious note and ended with strong gains as the bulls got off to a lethargic start. The benchmark indices gained over 2 per cent at close. The traded volumes were in line with the previous session, which is a negative indicator for an uptick session.
The market breadth was positive as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined advance decline ratio was 2,489:1,159. The capitalisation of the breadth was also positive as the BSE & NSE combined figures were Rs 10,799 crore:Rs 1,682 crore.
The indices have closed in the upper half of the intraday range and with positive market internals. These are indicators of optimism in the near term.
The bullish charge was led by the midcap and banking stocks as a bear squeeze was seen on these segments. The intraday range specified for Monday between 2,795 and 2,650 has held as the Nifty spot gyrated within these parameters.
The coming session is likely to witness a range of 2,830 on advances and 2,650 on declines. The bullish pivot will be at 2,750, above which the bulls will dominate the session. Below the 2,730 bearish pivot, the bears may return to enhance their short positions.
The outlook for the markets on Tuesday is that of cautious optimism as the possible positive overseas cues will lend momentum to the upthrust.