The markets consolidated after a big move yesterday, as was expected. Routine profit sales were expected at higher levels as short term bulls would attempt to lock in the gains.

The traded volumes were higher compared with the previous session, as smart money distributed stock at higher levels.

The market breadth was positive as the combined exchange advance decline ratio was 2177:1686. The capitalisation of breadth was also positive as the commensurate figures were Rs 18,999 cr:Rs 8,509 cr.

The F&O data for the previous session indicated a ramp- up in fresh longs by the bulls as the undertone was optimistic.

The indices have closed at the median point of the day, as the bulls and bears attempted to gain control. The 5280/5665 level advocated for Wednesday were not tested in either direction.

The coming session is likely to witness an intraday range of 5595 on advances and 5390 on declines, as the the F&O expiry is the dominant trigger in the near term.

The traded volumes and open interest will play a key role in determining the near term trend.

The outlook for the markets on Thursday is that of customary caution as it marks the end of near-month derivatives contracts series. Avoid fresh aggressive positions.