The markets opened with fanfare and closed with strong gains as the participants toed overseas cues and drove values higher. The turnover was lower as compared to the previous session and poor for the first session of the week. The market breadth was positive as the combined exchange figures were 3001 : 845. The capitalisation of the breadth on a commensurate basis was also positive as the figures were Rs 12,499 Crs : Rs 1,188 Crs.
The indices have closed at the upper end of the intraday range, albeit on lower volumes. The positive market internals indicate an extended buying/ short-covering bias. The Nifty has traded above the specified range at the 3,025-2,740 levels, indicating a bullish daily range. The coming session is likely to witness a range of 3,150 on advances and 2,935 on declines.
Traded volumes must spurt as a prerequisite to a fresh upthrust from current levels. The Nifty is now approaching the lower trendline of a violated bearish channel and will run into some possible profit sales in the near term.
The outlook for the markets on Tuesday is that of continued optimism, though a short-term corrective decline or sideways consolidation is not ruled out. Cut back on fresh trades for now.
Vijay L. Bhambwani
(CEO – BSPLindia.com)
The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com
Mandatory disclosure – the analyst has no exposure to any scrip/s recommended above.
