The markets closed with nearly 0.5 per cent gains as the expiry day saw the bears cover their shorts rather than roll them over -- according to my expectations. The traded volumes were higher than those in the previous session, a positive indicator on an uptick session.

The market breadth was positive as the BSE and the NSE combined advance decline ratio stood at 2030:1640. The capitalisation of the same was also positive as the combined exchange figures stood at Rs 9,984 crore:Rs 6,382 crore.

The F&O figures for the previous session indicated a marginal fall in the net outstanding positions -- a routine development ahead of the expiry.

The indices have closed at the upper end of the intraday range as it was an inside-day session according to the daily charts.

The pattern is a harbinger of a bigger move in the offing as the compression in the daily ranges results in forceful swings later. The 4,288 resistance specified for Thursday was more or less on the ball as the intraday high of the Nifty was 4,291.

The bear squeeze done with, the coming few sessions will determine the short-term trends of the market as the new settlement will see fresh positions being initiated on modified expectations. The listing of some recent IPOs will also have an impact on the short-term sentiments to a limited extent.

The outlook for the markets on Friday is that of continued optimism, though a runaway rally may be elusive -- barring overseas cues. Being a weekend session, fresh commitments may be limited and the traded volumes too may be subdued. Maintain a bullish bias, though aggressive buying may still be postponed.