The market breadth was positive as the combined exchange figures were 2481:1442. The capitalisation of the breadth on a commensurate basis was positive too at Rs 14,137 crore:Rs 8263 crore. The banking stocks continued to remain the weak spot.
The markets closed at the upper end of the intraday range as buyers emerged at lower levels. That the market internals were positive is a sign of optimism. The 5050 / 5160 levels advocated as a range for Wednesday held as the benchmark index tested the 5048 level and bounced higher. The 5100 bearish pivot did not suppress the bulls for long as the markets closed above this threshold. The coming session is likely to witness a range of 5060 / 5170. If the Nifty spot trades above the 5110 levels for majority of the session, expect an optimistic undertone.
The market internals indicate a higher turnover as the participation levels rose. The number of trades increased and the average ticket size was higher, indicating strong buying bias.
The outlook for the markets on Thursday is that of guarded optimism as the bulls are likely to attempt an upthrust. Should the overseas cues be conducive, some upsides may be seen. Avoid big ticket trades for now.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.
