The markets opened on a bullish note and proceeded to trade firmly through the session. Though some profit sales were seen midway, the closing was above the previous session as was advocated yesterday after a “long legged doji” formation.

Traded volumes were lower and the market breadth was positive as the combined exchange ratio was 2241 : 1351.

The capitalisation of the market breadth was positive too as the combined exchange figures stood at Rs 11184 crore : Rs 1672 crore. The derivatives figures for the previous session indicated a 0.50 per cent decline in net long positions on the back of unwinding.

The indices have closed on Friday with gains and that too in the upper end of the intraday range as the buying momentum persisted till the fag end of the session.

Gains were partially attributed to short covering at lower levels and that explains subdued traded volumes. The intraday range specified for Friday at the 4400 / 4310 was overcome on the upside, which indicates a bullish bias.

The subdued volumes are a cause for minor concern as the buying was aggressive. The coming session is likely to witness an intraday range of 4447 on advances and 4355 on declines. Watch the lower level keenly as this level is a Fibonacci level support in the short term.

The outlook for Monday will be determined by the overseas cues and other news flow if any. Aggressive buying should be ruled out for now.