Technicals: Follow-up buying expected

The capitalisation of breadth on a commensurate basis was positive as the figures were Rs 12817 crore:Rs 6188 crore. The turnover was lower as the buying conviction was lacking on advances. The f&o figures for the session indicated a higher turnover as the bears pressed sales on advances.

The indices have closed at the upper end of the intraday range as the buying pressure persisted till the fag end of the day's trade. The lower cash turnover indicated a scepticism at higher levels.

The intraday range advocated for Monday at the 4900 / 5030 held as the Nifty traded within these thresholds. The coming session is likely to witness a range of 5080 on advances and 4940 on declines.

The 4980 will be a bullish pivot for Tuesday, above which the players may expect optimism and possibly even follow-up buying.

The market internals indicate a lower turnover as the participation levels fell. The number of trades increased and the average ticket size was lower, indicating a selling bias by weaker hands. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets on Tuesday is that of guarded optimism as the bulls may resort to follow-up buying provided overseas cues are positive.