Markets rise on overseas cues, US housing sales

Bolstered by overseas cues and rising housing sales in the US, the markets began the week on a positive note. The mid-cap segment was the underperformer of the session, while banking and technology outperformed. The benchmark indices gained over 3 per cent at close. However, the traded volumes were lower compared to the previous session, which is a negative indicator for a Monday. The market breadth was positive as the BSE & NSE combined advance decline ratio was 1,858:1,714. The capitalisation of the breadth was also positive as the BSE & NSE combined figures were Rs 9,250 crore: Rs 1,901 crore.

The indices have closed in the upper end of the intra-day band and accompanied by mildly positive market internals. These are bullish indicators and can be partly attributed to the pre-expiry short covering. The market breadth indicates a lack of buying conviction on advances. The intra-day range specified at the 2,750/2,600 was overcome.

The coming session is likely to witness a range of 2,835 on advances and 2,700 on declines. The bullish pivot for the session will be at 2,740, above which the bulls will get stronger. Below the 2710, the bears may attempt to push markets downwards.

Vijay L Bhambwani 
(Ceo - BSPLindia.com)

The author is a Mumbai based investment consultant.