The market ended with gains in a highly volatile trading session, with the Nifty settling above the 10,900-mark. The BSE Sensex rose 113.31 points or 0.31 per cent to close at 36,582.74. However there was selling in broad market, as the BSE Mid-Cap index fell 0.82 per cent and the BSE Small-Cap index plunged 1.17 per cent.
The market breadth of the market was weak as 781 shares rose and 1,776 shares fell. Among the major Sensex gainers were Reliance Industries (up 3.52 per cent), TCS (up 0.81 per cent) and HDFC (up 0.87 per cent) and Bajaj Auto (up 1.67 per cent).
Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: “We had a gap down opening to kick off the new trading week after Friday’s volatile session. During the first half, the broader market remained under; however, the latter half turned out to be an excellent one for the bulls. The market breadth improved tremendously and in the process, Nifty managed to surpass the 10,900-mark on a closing basis. The heavyweight banking space, which has been under performing for the last couple of days, became the charioteer of this splendid recovery.
“We believe that the stage is very much set for our benchmark index to go beyond recent hurdles. The last two days’ up-move has laid the foundation and further impetus may probably be provided by the RBI monetary policy. Friday’s low of 10,800 played a sheet anchor role and going ahead, 10,987 are not too far now. A move beyond 10,987 would unfold the next leg of the rally.
Jayant Manglik, president, Religare Broking, said: Markets traded volatile on expected lines and settled marginally higher, tracking mixed cues. Investors were in cautious mood from the beginning, citing weak global cues and not so encouraging earnings announcements over the weekend. Mixed trend was witnessed on sectoral front while pressure continued on broader front. We’re seeing mayhem on the stock-specific front and the current positioning of the Nifty is not reflecting the actual underlying sentiment. We strongly advise traders to avoid averaging long making positions and preferring options instead of naked futures for short term trading.