The markets opened with a gap up and ended with gains, though the initial bullishness was trimmed. The benchmark indices gained approximately 2 per cent at close.
The traded volumes were as lower compared to the previous session, which is a negative indicator for a Monday and an uptick session. The market breadth was positive as the BSE advance decline ratio was 1384:1016.
The capitalisation of the breadth was positive as the BSE figures were Rs 2,660 cr:Rs 309 cr.
The indices have closed in the lower half of the intraday range and that too on lower volumes but positive market internals.
These are indications of a weaker bullish activity as conviction at higher levels was lacking. The midcap index was a drag on the markets, indicating selling by retail players.
The intraday range specified for Monday at the 2790 / 2625 was overcome upwards as the news flow was positive for day traders. The coming session is likely to witness a range of 2875 on advances above which the 2930 mark is possible.
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Declines will see the 2685 levels being the immediate base. The 2770 level will be a bearish trigger below which the outlook will be weak. Conversely, over the 2810 levels, the bulls may return in the fray.
The outlook for the markets on Wednesday is that of guarded optimism as the bulls are on the defensive. Even though the sentiments are optimistic, follow up buying is not forceful.
Overseas cues will have a significant impact on Wednesday’s session. Trade light.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)
