The markets witnessed another uptick session with higher volumes and positive internals though the strength was seen in the last hour of trade. The overseas cues lent an optimistic hue as the United States went to polls.
The combined exchange market breadth was 2721:1084. The capitalisation of the breadth on a commensurate basis was also positive as the figures were Rs 14014 crore: Rs 1681 crore.
The traded volumes improved over the previous session and the market internals were positive. Should this combination be seen in the coming sessions, the rally may get stronger legs.
The 3150/2935 range advocated for Tuesday was proved accurate as the Nifty halted its advance at this threshold. The coming session is likely to witness a range of 3245 on advances and 3025 on declines. The bullish pivot will be the 3095, above which the Nifty spot must remain. Watch the 3065 level as a bearish pivot below which the bears may get bolder.
The outlook for the markets on Wednesday is that of guarded optimism as the upmove may slacken in momentum. The day is likely to be news laden and trends may commence on short notices. Trade on lower volumes. Remain long as long as the bullish pivot holds.
Vijay L. Bhambwani
(CEO – BSPLindia.com)
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The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.