Nifty reaches first target

The market ended with moderate gains, with the BSE Sensex rising 192.35 points or 0.53 per cent  to settle at 36,578.96. The Nifty 50 rose 54.90 points, or 0.50 cent to settle at 10,961.85. However, the BSE Mid-Cap Index fell 0.56 cent and Small-Cap fell 0.70 cent. The market breadth was weak with 938 shares rose and 1,657 shares fell.

Among the sectoral indices on the BSE, Energy was up 2.68 cent  and Oil & Gas, 0.7 cent.

Technical view

Sameet Chavan, chief analyst-technical & derivatives, Angel Broking, said: “Last week’s range bound movement was followed by a sluggish start to the new trading week, in the absence of any trigger on the domestic as well as global front. During the initial trade, we saw some nervous trades, but immediately after 15 minutes, a sudden spurt seen in the benchmark index to surpass previous week’s high. However, during the remaining part of the day, index consolidated in a small range to conclude the session by adding half a percent to the bulls’ kitty.

“As far as Nifty is concerned, Monday’s session was quite encouraging. The index managed to surpass last four weeks high, which was acting as a sturdy wall of late. However, the market breadth remained weak throughout the day…Going ahead, if Nifty has to maintain this lead; other constituents should also participate in order to have a healthy rally. As far as levels are concerned, the Nifty has reached our first target of 10,970 and going ahead, if other heavyweights start chipping in, a move towards 11,100– 11,200 cannot be ruled out. On the flipside, 10,928–10,885 would now be seen as a key support zone.

Market view

Vinod Nair, head of research, Geojit Financial Services, said: "Optimism over US-China trade deal and buying in IT & pharma stocks due to weak rupee supported the rally on Monday. Fall in 10-year yield and moderation in inflation is providing hope that RBI will ease its monetary policy. However, mid & small caps continued to underperform as investors maintained a cautious view due to tepid start to Q3 earnings."

—Ashwin Punnen