The market breadth was positive as the BSE & NSE combined advance decline ratio stood at 3414:541. The capitalisation of the breadth was also positive as the commensurate figures were Rs 26,014 crore:Rs 779 crore.
The indices have closed at the upper end of the intraday band as the bulls prevailed over the bears, that too convincingly. The intraday range for Wednesday advocated at the 4340 / 4170 was overcome. The Nifty is now poised at the upper end of a downward sloping channel - always a tricky area for short-term traders.
The coming session is likely to witness a range of 4570 on advances and 4325 on declines. The wide range is due to the higher base effect of Wednesday's session. The bullish pivot for the session will be the 4400 above which the spot Nifty must remain to be firm. On the flip side, the bearish pivot will be the 4340 level.
The market internals indicate a higher turnover as the participation levels rose. The number of trades increased and the average ticket size was higher, showing a strong buying bias.
The outlook for the markets on Thursday is that of guarded optimism as the markets may choose to consolidate after a big upthrust. Avoid big ticket longs as of now.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
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