Bulls likely to retain their hold

The markets saw hectic buying at lower levels as the advocated support yesterday at 4300-4310 band saw buying by strong hands. The bear squeeze helped matters as the buying continued till the end of the session.

The market breadth was positive as the BSE & NSE combined advance decline ratio stood at 2074 : 1559, whereas the capitalisation of the same stood at Rs 11692 crore : Rs 6009 crore.

The derivatives data for the previous session indicate a mild decline in the open interest as profit sales were witnessed at higher levels.

The indices have closed at the upper end of the intraday range and the market breadth and traded volumes have been higher. Coming on a weekend session, these are signs of optimism as the indices have scaled new highs on an intraday basis.

The 4300 level is now an established floor for the near term traders and the coming session is likely to witness an intraday range of 4451 on advances and 4319 on declines.

The wide range is owing to the higher intraday volatility in the recent sessions and the swing charts are pointing towards wider intraday ranges in the near term.

The outlook for Monday is that of continued optimism and should the overseas cues remain positive, the bulls are likely to retail their hold on the sentiments.