The markets opened with mild optimism on falling crude prices and ended with stellar gains as the bulls returned with force. The traded volumes were higher than the previous session, a positive indicator on an uptick session.
The market breadth was positive as the combined exchange advance decline ratio stood at 2619:1307. The capitalisation was also positive as the combined exchange figures were Rs 18,533 crore:Rs 4,446 crore.
The indices have closed at the upper end of the intraday range - after a brief hiatus - as the session was a bullish one. The market internals point towards an optimistic undertone that seems to indicate further headroom northwards.
The intraday range specified for Tuesday at the 4315 / 4485 was overcome on the upside. A bear squeeze may follow if the upthrust extends. The coming session is likely to witness a range of 4605 on advances and 4425 on declines. The bullish pivot for the session will be 4465.
The market internals indicate a higher turnover as the participation levels rose due to the bullish undertone. The number of trades increased and the average ticket size was higher, indicating a stronger buying bias. The outlook for the markets on Wednesday is that of continued optimism, provided overseas cues are neutral to positive. Avoid the temptation to go short for now.
