The markets displayed resilience as the closing was off the intraday lows. The traded volumes were lower for a Monday as traders preferred to sit on the fence till clarity emerged from the USA. The market breadth was marginally negative as the combined exchange figures were 1,885 : 1,907.
The capitalisation of the breadth on a commensurate basis was also similarly negative as the figures were Rs 6,338 Crs : Rs 7,757 Crs. The lower volumes indicate a bigger move unfolding in the near future as the western chart studies indicate an “inside day formation” — the intraday range being within the previous day’s range.
The indices have closed at the upper end of the daily spectrum, albeit with poor volumes and market breadth. The oriental charts indicate a paper umbrella or “karakasa”, which has bullish implications if follow-up buying emerges above Monday’s intraday highs.
The 4,445-4,245 range specified for Monday held as the Nifty traded within these parameters. The coming session is likely to witness a range of 4,295 on declines and 4,420 on advances. The bulls will need a consistent trade above the 4,330 pivot and the bears will re-emerge if the Nifty keeps below the 4,310 level.
The outlook for the markets on Tuesday will be news driven as the developments in the US will dominate global sentiments. Play safe, trade small.
