After starting on a nervous note, the bulls attempted a comeback that took the benchmark index over 1 per cent above its previous close. The traded volumes were higher than the previous session, which is a sign of optimism for the short-term players.
The market breadth was negative as the BSE & NSE combined advance decline figures were 1,550:2,046. That indicates an unwinding bias at higher levels by the weaker hands.
The indices have closed at the lower end of the intra-day range and on negative market internals and higher turnover. That points towards a cautious approach by the bulls. The intra-day range advocated yesterday at the 2,850/2,680 levels has held as the Nifty trended within these parameters.
The coming session is likely to witness a range between 2,700 on declines and 2,840 on advances. The 2,850 area keeps cropping up as a resistance/congestion zone. The bullish pivot will be at the 2,800-level and the bearish pivot will be at 2,775 levels.
The outlook for the market on Wednesday is that of cautious optimism as positive overseas cues and a consistent trade above the 2,850 levels will see a fresh upthrust. Keep monitoring the activity above the 2,800 levels for a bullish pickup in the near term.
