The markets opened on a bullish note only to end the session with minor losses on the Nifty as the bulls were unable to hold their initial positions. The traded volumes were lower than the previous session as the higher levels saw a drying up of buying momentum.

The market breadth was positive as the BSE & NSE combined advance decline ratio stood at 2045 : 1631 and the capitalisation of the same was also positive as the combined exchange figures were Rs 10,135 cr : Rs 3,566 cr.

The indices have closed at the lower end of the intraday range that too with the intraday high of the Nifty being the significant high of the current upmove. That indicates a key reversal on the daily charts and the outlook is that of caution as the bulls will need to overcome the 4346 top to take the upmove forward.

The Nifty was advocated to encounter resistance at the 4349 levels which held true as the index retraced from the 4346 levels. As the 4293 level was advocated as a critical support, which was not violated, the outlook maybe deemed to be neutral to positive in the short term.

The coming session is likely to witness levels of 4339 on advances and 4288 on declines. Watch the lower level closely as strong buying must emerge at this level if the bulls are to have an upper hand in the coming session.

The coming session is likely to be a crucial one as the trend determination process is likely to begin in earnest and the bulls will need to establish their authority over the bears for 2-3 sessions in a row to force a short covering that will cause the next upmove.

Traded volumes and open interest will play a large role in the sentiment formation in the coming days. Stock specific activity is likely to be seen on Reliance Communications and Reliance Petroleum which are displaying strength on the near / medium term charts.