The markets opened firm and remained that way as buying persisted throughout the session. The positive global cues coupled with short covering near the all time highs nudged benchmarks higher.

Market breadth was positive and the BSE & NSE combined advance decline ratio stood at 2050 : 1679, whereas the capitalisation of the same was significantly positive as the combined exchange figures stood at Rs 12,168 cr : Rs 3,042 cr.

The F&O data for the previous session indicated a continued build up of fresh longs as the bulls enhanced commitments.

The indices have closed at new highs as the Nifty is now conclusively above the 6293 levels logged on June 4. The closing was at the upper end of the intraday range and the volumes were higher.

The positive market breadth was indicative of a buying momentum which must sustain if the upthrust is to extend. The 4288 levels was advocated as a buying support which was not even tested, whereas the 4339 resistance was convincingly overcome.

That indicates a rising intraday range and as long as the Nifty remains above the 4345 levels for most part of the coming session, the outlook will remain bullish. The intraday range for Wednesday will be at the 4389 on the upsides and 4327 on declines.

The outlook for the markets on Wednesday will be that of consolidation as the overseas triggers will be absent due to a holiday on account of the US Independence Day. Local traders are likely to tone down their aggression ahead of this development.

The overall outlook will be that of optimism and long positions initiated on RComm and Reliance Petro maybe held with a raised stop loss to protect even the notional gains. Breakouts are seen on both these counters on the daily charts.