The markets staged a late rally to surge past the technical and psychological hurdle of 3,000. The 2,965 bullish pivot was not violated seriously and was a turning point for the markets. The traded volumes were marginally higher as compared with those in the previous session, which is a sign of optimism. The market breadth was positive as the BSE & NSE combined advance-decline ratio was 2,835 : 897. The capitalisation of the breadth on a commensurate basis was also positive as the figures were Rs 10,864 Crs : Rs 4,233 Crs.
The indices have closed in the upper half of the intraday band and on positive internals. The intraday band of 2,860-3,045 levels advocated for Tuesday was overcome on the upsides as the index scaled the 3,052-level. The coming session is likely to witness a range of 3,100 on advances and 2,980 on declines. The bullish pivot will be at 3,005, above which the Nifty spot must remain if the bulls are to prevail. Conversely, a consistent trade below the 2,980-level will trigger profit sales.
The market internals indicate a higher turnover as the participation levels rose due to the sustained strength. The number of trades increased and the average ticket size was constant, indicating a retail-buying bias. The capitalisation of the market was higher in line with an optimistic session.The outlook for the markets on Wednesday is that of optimism as the bulls may attempt to hold their initiative.
