Tech view: Cautious optimism for today

The markets opened on a bullish note and ended with tepid gains as higher levels attracted profit sales. The benchmark indices gained over 0.5 per cent at close. The traded volumes were lower as compared to the previous session, which is a negative indicator for an uptick session.

The market breadth was negative as the BSE & NSE combined advance decline ratio was 1693:1910. The capitalisation of the breadth also indicated the pressure on advances as profit sales eroded gains.

The indices have closed at the lower end of the intraday range and amidst lower turnover. That the market breadth was negative adds to the weight of evidence pointing towards a lack of conviction at upthrusts.

The intraday range specified for Wednesday between the 2840 and 2700 levels held as the Nifty retraced from the 2842 levels. The coming session is likely to witness a range of 2880 on advances and 2740 on declines.

The bullish pivot will be at the 2825 levels and the bearish pivot at the 2800 mark. Though the daily bars indicate a rising tops and bottoms formation, a clear and confirmed buy signal eludes the bulls.

The outlook for the markets on Thursday is that of guarded optimism as a breakout past the 2830 levels will be needed if the uptrend is to persist. The overseas cues will have a bearing on the domestic sentiments too.