A morning walk down Dalal Street | Nifty likely to show major upmove only on a close above 10,987

The Nifty50 recouped losses and managed to reclaim 10900 towards the close while Sensex rallied by over 100 points. So, we can safely say there were no Monday blues.

The final tally on D-Street --- the S&P BSE Sensex rallied 113 points to close at 36,582 while the Nifty50 added 18 points to close at 10,912. 

However, most analysts are still suggesting investors to be cautious before they plan to go long in the index. Largecaps are in the relatively safe zone but there was mayhem on stock specific front and the current positioning Nifty is not reflecting the actual underlying sentiment.

Analysts advise traders to avoid averaging long making positions and preferring options instead of naked futures for short term trading. 

The market rallied on the back of consumption and private banks which are both beneficiaries from the Interim Budget 2019. The market is also looking at the upcoming RBI policy, hoping for a change in stance from ‘Calibrated Tightening’ to ‘Neutral’.