The markets opened on a bullish note and ended with record gains as the indices logged fresh highs.

Traded volumes were sharply higher compared with the previous session, which is a bullish indicator on an uptick session.

The market breadth was marginally negative as the BSE & NSE combined advance decline ratio was 11 : 15. The derivatives data for the previous session indicate a rally in net long positions amid a steady put-call ratio.

The indices have closed at the upper end of the intraday range and that too on higher volumes. That the market breadth was not positive can be attributed to the scepticism from the retail segment and the selling in the small cap segment.

The midcap segment too has shown signs of some profit sales - indicating a slowing down of the risk appetite at higher levels.

The 4486 resistance at higher levels was easily overcome as the Nifty has closed convincingly above this threshold.

The coming session is likely to witness an intraday range of 4544 on advances and the 4460 levels on declines. Watch the market internals more keenly than ever for signs of weakness in the near term.

The outlook for the markets on Monday is that of continued optimism as long as the overseas cues are neutral to positive. The technology sector may see some choppiness in the near term and the rally is likely to see support from engineering, infrastructure and capital goods sectors.