Positive bias remains

The market ended with gains in a highly volatile trading as the Sensex gained 209.05 points or 0.59 per cent to close at 35,692.52, after falling 4.40 points, or 0.01 per cent at the day's low of 35,479.07. The Nifty 50 index ended with 55.90 points or 0.52 per cent gains to settle at 10,842.85, its highest closing level since 1 February, 2018. The S&P BSE Mid-Cap index rose 0.90 per cent, outperforming the Sensex, while the S&P BSE Small-Cap index was up 0.54 per cent, underperforming the Sensex. The market breadth was positive as 1,441 shares rose and 1,222 shares fell on BSE.

Technical view

Sameet Chavan, chief analyst-technical and derivatives, Angel Broking, said: “Monday’s Doji’ pattern didn’t have any meaningful impact on the market. The broad based rally continues with top heavyweight index constituents taking a back step. Hence, we have been expecting this journey towards 10,880–10,920 to be gradual in nature. The daily chart depicts a point of intersection of two trend lines around 10,860. Going forward, index needs to traverse and sustain above this crucial junction in order to continue its march towards 10,900–10,920 levels. As of now, the bias remains on the positive side. If it fails to surpass this barrier then it could lead to some immediate profit booking in the market. The immediate support would now be seen around 10,777–10,700 levels. The only sector that stands out is pharmaceutical.There’s possibility of this sector getting bottoming out and some potential bets are seen within the basket. Traders with a medium term view should continue to accumulate marquee names within this space.”

Market view

Vinod Nair, head of research, Geojit Financial Services, said: "Market edged higher supported by positive outcome from US-North Korea summit which may lead to an end of conflicts in Korean peninsula. However, global market remains mixed ahead of FED, ECB & BoJ policy meeting during the week. A 25bps rate hike from US FED is largely factored in the market but any hawkish comment of rate cycle may dent the sentiment. Investors are also keen on today’s CPI & IPP data to get a provisional direction."

—Ashwin Punnen