The bulls managed to hold on to their initiative as the headline indices gained about 2 per cent at close. The traded volumes were steady compared to the previous session, which is a positive indicator on an uptick day.
The market breadth was positive as the BSE & NSE combined advance decline ratio was 2536:1110. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 11,010 cr:Rs 827 cr.
The indices have closed at the higher end of the intraday range as was expected. The positive internals add to the weight of bullish evidence.
The intraday range specified for Tuesday between the 3015/2825 has held as the Nifty traded within the specified parameters. The coming session is likely to witness a range of 3070 on advances and 2910 on declines.
As long as the Nifty spot remains above the 2955 levels, the bulls will dominate the last trading day of 2008.
The outlook for the markets on Wednesday is that of continued optimism provided the overseas cues remain neutral to positive. Traders should still avoid fresh aggressive short sales. Wish you a Happy New Year!
Vijay L Bhambwani, Ceo - BSPLindia.com, is a Mumbai-based investment consultant