The benchmark indices ended with over 1.5 per cent gains amid thin volumes.
The market breadth was highly positive as the ratio of advances to declines on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined stood at 3 : 1.
The breadth was even more positive in market capitalisation terms, whereby the figures were Rs 5,539 crore : Rs 642 crore.
The indices have surpassed the immediate term resistance points and are assisted by hectic short covering at higher levels as the bears are caught on the wrong foot.
The 38 per cent retracement has become an immediate base for the markets as the bull markets are now intact.
Should the previous highs be surpassed in the coming fortnight, the indices will attempt newer highs.
In the immediate future however, watch the 1590 levels on the Nifty and 4945 on the Sensex on the upsides. On the lower side, expect support at the 1532 and 4830 on the indices in the immediate future.
The outlook for Thursday is that of optimism as the switching / squaring up of positions in the derivatives segment is almost over and the exposure is rising on the futures segment as the options near expiry. That is a healthy sign.
Vijay Bhambwani
CEO, BSPLindia.com
The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com.
Sebi disclosure: The analyst has no exposure to the scrips mentioned above.
