Maintain bullish bias as long as 5400 level holds

The markets witnessed optimistic consolidation as the bulls attempted to regain ground lost in the week before last.
The headline indices managed to log gains, though the recent peaks remained elusive.

The headline indices showed buying on declines as bear covering was in evidence.

Sectorally, the mid-cap and banking sectors witnessed hectic activity even as traders bought into technology stocks. The BSE and NSE combined weekly advance-decline ratio was positive at 11817:9790. The capitalisation of the same was positive on a
commensurate basis at `49,223 crore: `38,359 crore. The NSE gained `11,2464 crore in market capitalisation on a week-on-week basis.

The overseas investors were net buyers to the extent of `1,485.8 crore during the week that saw the rupee close at the 46.64 levels vis-a-vis the US dollar (against the previous week’s 46.89 levels).

The US markets saw the headline indices more than covering the lost ground over the prior week.

The Nasdaq Composite saw smart gains and that indicates optimism for the domestic technology stocks in the near term.
The UK FTSE100 saw a commensurate upthrust over the previous week, in tandem with the US markets.

The Asian region saw Singapore, Hong Kong, China and Japan markets up in that order of ascent over the previous week. Overall, the overseas cues are positive for the domestic markets in this week.

Technically, the markets are showing signs of resilience as the domestic indices are showing signs of high relative strength over their global peers.

The weekly range advocated for the Nifty last week, between 5650 and 5275, has held as the benchmark trended within these levels during the week. This week is likely to witness a range of 5625 on advances and 5250 on declines.

The bullish pivot for Nifty for this week will be at the 5450 levels and the bearish pivot will be at the 5400 levels. Traders may keep a bullish bias in the markets as long as the 5400 levels hold on a closing basis.