The markets ended the first session of the week with mild gains as traders refrained from whole-hearted participation. The benchmark indices rose 0.50 per cent at the close of the day’s trading. The traded volumes were lower compared to the previous session, which is a negative indicator for a Monday.
The market breadth was positive as the BSE advance decline ratio was 1,353:1,024. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 5,687 crore: Rs 3,198 crore.
The indices have closed in the upper half of the intra-day range as the bulls managed to hold on to their positions during the session. The 2,800 level bullish pivot advocated over the weekend was an accurate trend indicator as the Nifty remained bullish above this threshold. The 2,900/2,750 range advocated held as the Nifty remained well within these thresholds. The coming session is likely to witness a range of 2,900 on advances and 2,780 on declines. The bullish pivot will be above 2,850, which the bulls will dominate the session. Coversely, below the 2,830 bearish threshold, the bears may get stronger.
The outlook for the markets on Tuesday is that of cautious optimism as overseas cues will be critical for domestic sentiments. President Obama’s address will set the tone and tenor for the coming sessions. Trade light in the coming sessions.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
The author is a Mumbai based investment consultant.