After opening on a positive note, the markets ended the session with strong gains as the buying momentum persisted till the fag end of the session. The benchmark indices gained about 2.5 per cent at close. The traded volumes were higher as compared to the previous session, which is a positive indicator on an uptick session.
The market breadth was positive as the BSE & NSE combined advance decline ratio was 2:1. The capitalisation of the breadth was also positive as the buying was fairly broadbased though banks and technology led the way.
The indices have closed in the upper end of the intraday range as the buyers persisted in their activity till the end. That the session was accompanied by positive market internals and steady participation indicate a futher upside in the offing. The 3000/3115 range advocated for Monday was overcome on the upside as the Nifty scaled the 3132 levels.
The Nifty has smashed past the resistance points of December 19 and 22, 2008 to close above this hurdle. That is a promising sign for the bulls. The coming session is likely to witness a range of 3185 on advances and 3055 on declines. As long as the Nifty spot stays above the 3100 levels, expect the bulls to have an upper hand.
The outlook for the markets on Tuesday is that of continued optimism and as long as no adverse development occurs, the bulls can expect to strengthen their grip on the markets.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)
