The markets have closed at the upper end of the intraday range as the bears remained under pressure and preferred to unwind at higher levels.
The initial strength displayed by markets persisted till the fag end of the session as the market internals were positive, which is a mildly positive sign. The 4620 / 4485 range advocated for Tuesday was overcome as the Nifty spot traded above these parameters even on a closing basis.
The coming session is likely to witness a range of 4720 on advances and 4585 on declines. The 4625 level will be a bullish threshold, above which the bulls will continue to dominate the sentiment on Wednesday.
The market internals indicate a higher turnover as the participation levels rose marginally due to the optimistic undertone in the bull camp.
The number of trades increased and the average ticket size was lower, indicating a cautious buying bias. The capitalisation of the market was higher in line with an uptick session.
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The outlook for the markets on Wednesday is that of guarded optimism as the bulls may attempt to hold on to their new-found initiative, provided the overseas cues are conducive. Avoid big ticket trades.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.
