The markets opened on a tepid note and proceeded to trade higher through the day. The benchmark indices fired up in the last hour of trade as the rally was triggered by bullishness in select index heavyweights. Traded volumes were higher than the previous session as the intraday trader participation perked up.

The market breadth was highly positive as the BSE and NSE combined figures were 2351 : 1327 and the capitalisation of the breadth was also positive as the figures on a BSE & NSE combined basis were Rs 13232 cr: Rs 2500 cr.

The F&O data for the previous session indicated 1.3 per cent increase in net long positions on a falling PCR as the bears covered shorts at lower levels.

The indices have closed at the upper end of the intraday range, that too with higher traded volumes and positive market breadth. The rally was fired late in the session and the buying momentum is likely to spill over to the next session.

That the Nifty has closed at its highest after April 24, is a sign of strength. The 4150 level advocated as a resistance for Wednesday was easily overcome and the support at the 4090 mark was not even tested - indicating a rising intraday range.

The Nifty is likely to encounter minor resistance at the 4182 level which is a significant high as per the Welles Wilder formula. A consistent trade above this threshold will witness a bullishness that may test the 4213 levels on advances and the 4129 level on declines.

The outlook for the markets on Thursday is that of continued optimism as the bulls are likely to be aided by the short squeeze that is likely to follow. Barring adverse overnight triggers from overseas markets, the way forward is to remain long.