Mukarram Bhagat of ASK Raymond James says that the volatility in the market will continue.

Accoring to him, 3700 is a support and 3900 is the resistance level for the Nifty, and the markets will trade within this range, with intraday volatility.

He expects the market trend to move upwards in January, on the back of good quarterly results and budget expectations.

"When there is a lot of volatility usually that is succeeded by a breakout either a down breakout or an up breakout.If  I were to make a call, I would say that it could possibly go up because the January results should be quite good and whatever indications we are getting of budgetary moves I think they are positive. So there will be lot of enthusiasm about the budget and also the results by all indications so far including the advance tax figures. Looks like third quarter will be pretty good results season," comments Mukarram Bhagat.

He says that these two factors will lead to a break out on the upside for the markets.