The markets opened in the green and proceeded to trade in a tight range as the last-hour selling of Friday returned to haunt the bulls. The activity was subdued inspite of largely positive overseas cues and that indicates some profit taking bias.

The market breadth was positive as the BSE & NSE combined advance decline ratio was 2064 : 1736 and the capitalisation of the same was also positive as the figures were Rs 9195 crs : Rs 6552 crs.

The indices have closed at the upper end of the intraday band but the day-on-day gains were marginal. Traded volumes were expectedly lower as the bulls displayed a lack of buying conviction at higher levels.

Market breadth remaining positive was a positive indicator though the rate of ascent of the markets seems to ease marginally. The 4544 / 4460 band specified for Monday was not tested in either direction as the intraday range was compressed.

The coming session is likely to see an intraday range of 4537 on advances and 4479 on declines. Watch the traded volumes and market breadth as and when the Nifty spot trades above or below the previous sessions high / low points.

The outlook for the markets on Tuesday is that of consolidation as the bulls are clearly shirking away from aggressive purchases and the upsides are running into profit taking pressure. Till the overhead supply is not taken care of, sustainable rallies will be elusive in the absolute near term. Refrain from aggressive fresh purchases.