The capitalisation of breadth on a commensurate basis was positive too as the figures were Rs 15,653 crore:Rs 3,278 crore. The turnover was lower as the bulls displayed a lack of buying conviction at higher levels.
The indices have closed at the upper end of the intraday range as the sentiments were optimistic on overseas cues and bear covering at lower levels.
The lower cash turnover indicated short squeeze to be the primary force behind the upthrust. The intraday range advocated for Wednesday at the 4880 / 5030 held as the Nifty traded within these thresholds.
The coming session is likely to witness a range of 5070 on advances and 4950 on declines. The 4990 level will be a bullish pivot for Thursday above which the players may expect optimism - provided volumes accompany upmoves.
The market internals indicate a lower turnover as the participation levels fell. The number of trades decreased and the average ticket size was lower, indicating a weaker buying bias. The capitalisation of the market was higher in line with an uptick session.
The outlook for the markets on Thursday is that of guarded optimism as the bulls are likely to attempt fresh upmoves provided overseas cues are positive/neutral.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.
