The markets opened on a bullish note and ended with gains, though off the intraday highs. The benchmark indices gained close to 2 per cent at close.
The traded volumes were higher than the previous session, which is a positive indicator. The market breadth was negative as the Bombay Stock Exchange advance decline ratio was 1,162 : 1,262.
The capitalisation of the breadth was positive buying was focused on select heavy weights.
The indices have closed in the upper half of the intraday range though the market internals are not imbibing outright buying conviction. The profit sales at higher levels are indicative of the nervous undertone and the retail selling bias.
The gap up opening is raising the possibility of some more profit selling, especially since the coming session is a weekend one. The 2,615/2,500 range specified for Thursday was overcome on the upside as the domestic markets discounted the US market upthrust.
The coming session is likely to witness a range of 2,675 on advances and 2,530 on declines. The bullish pivot for the coming session will be at the 2,620 level and the bearish pivot will be at the 2,590 level.
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The outlook for the markets on Friday is that of guarded optimism as the overseas cues and the short covering will determine the extent of the upmove.
Vijay L Bhambwani
(CEO - BSPLindia.com)
The author is a Mumbai-based investment consultant)