The market breadth was positive as the BSE & NSE combined advance decline ratio stood at 2720:1061. The capitalisation of the breadth was also positive as the commensurate figures were Rs 14676 crore: Rs 3276 crore.
The indices have closed at the upper end of the intraday band as the bulls prevailed over the bears till the end of the session. The market internals being positive on an uptick session and improved volumes makes the upmove a qualitatively better one. The intraday range for Tuesday advocated at the 4230 / 4025 was overcome as the Nifty surpassed the upper threshold even on a closing basis. That indicates a rising daily range.
The coming session is likely to witness a range of 4340 on advances and 4170 on declines. The bullish pivot for the session will be the 4210 above which the spot Nifty must remain to be bullish. On the flip side, the bearish pivot will be the 4180 level below which the bears will return with force.
The internals indicate a higher turnover as the participation levels rose due to the underlying strength. The number of trades rose and the average ticket size was higher, indicating a stronger buying bias.
The outlook for the markets on Wednesday is that of optimism as the markets digest the political events on one hand and overseas markets on the other.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.
