Markets look optimistic

The markets spiked higher, on good volumes, as the resistance of 5897 was overcome on huge volumes. The market breadth was positive as the combined exchange figures were 3099:931.

The capitalisation of breadth was also positive as the commensurate figures were Rs 25899 crore: Rs 4633 crore. The F&O data indicated a 3.62 per cent increase in net long positions with a rise in the PCR.

With the indices closing at the upper end, accompanied with positive market internals and improved volumes, the upmove imbibes confidence in the near term.

The coming session is likely to witness a wide intraday range of 6005 on advances and 5877 on declines due to the larger base effect of Wednesdays range.

The Nifty closed at it’s highest, indicating bullishness. Watch the quality of the upmove hereon as a consistent trade above the intraday high of 6012 with forceful volumes and increased open interest will trigger off a fresh round of buying.

The outlook for the markets on Thursday is that of continued optimism, barring negatives or unforeseen circumstances. The indices may be headed for blue sky territory in the next few sessions. Avoid shorting on rallies.

Vijay L. Bhambwani