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Our markets began the day on a flat note, but this was soon followed by an initial decline that raised concerns among traders. Nevertheless, the bulls viewed this as an opportunity, and there was strong, widespread buying activity that persisted throughout the trading session. Ultimately, the Nifty index closed with 0.38% gains at 20070.

After a brief pause observed on Tuesday, the bullish sentiment has made a comeback, with the market closing above the magical figure of 20000 for the first time ever, sparking renewed optimism. From a technical perspective, prices have closed above the previous high reached more than a month ago, following a healthy correction period. This pattern resembles a 'Saucer' formation, indicating that the bulls are currently in control, and the upward momentum is expected to continue in the near term. However, it's essential to avoid being complacent as indicators suggest an overbought market, which might lead to occasional pauses or dips similar to what occurred on Tuesday. In such instances, the recommended strategy would be to capitalize on intraday dips and consider profit-taking at higher levels. Currently, Tuesday’s low appears to be a panic low around 19900, and any dip towards this level should be viewed as a buying opportunity. Only a significant breach below these levels (which is not anticipated) could potentially trigger weakness. On the positive side, the near-term targets as per the reciprocal retracement levels are 20200 and 20450.

Once again, there was widespread buying activity, and even midcap stocks, which faced pressure on Tuesday, joined the upward movement. However, the primary focus remained on the prominent, large-cap stocks, which are expected to remain a safe trading option and provide opportunities for outperformance in the near term.

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