The markets opened on a steady note and ended with minor change over the previous session as the bulls consolidated their hold over the markets. The benchmark indices displayed divergence as the banking index out performed the broader markets.
The traded volumes were higher as compared to the previous session, which is an indicator of buying at lower levels. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1766:1976. The capitalisation of the breadth was also negative as the BSE & NSE combined figures were Rs 8,135 cr:Rs 8,492 cr.
The indices have closed in the upper end of the intraday range and closed there. The higher traded volumes indicated a tug-of-war between the bulls and bears. The oriental charts indicate a crude “tonbo” formation indicating a possible struggle between the warring factions in the coming session.
The intraday range specified for Tuesday between the 3185/3055 has held perfectly as the Nifty bounced from the 3056 levels. The coming session is likely to witness a range of 3000 on declines and 3190 on advances. The bullish/bearish pivots for the coming session will be the 3110 above which the Nifty spot must trade to favour bulls and 3080 below which the bears may gain an upper hand.
The outlook for the markets on Wednesday is that of guarded optimism as the impeding holiday on Thursday and overseas cues may weigh on the markets.
