Tech view: Markets may see a technical pullback

The markets opened with a spring in it's step, as was advocated yesterday, due to the combination of occidental and oriental studies which converged towards a bullish session. The traded volumes improved marginally and the market breadth was positive as the combined exchange figures were 2519:1327. The capitalisation of the same was also positive as the commensurate figures were Rs 11121 crore:Rs 1894 crore.

The indices closed at the upper end of the intraday band and on positive market internals. The relatively poor traded volumes remain a concern as follow-up buying assumes more significance. The 4440 / 4315 range advocated for Wednesday held as the index gyrated within these parameters.

The hammer formation on the oriental charts yesterday played its part and the Nifty will need to to trade with strength above the 4400 level to be outrightly bullish. The coming session is likely to witness a range of 4480 on advances and 4350 on declines. Below the 4380 trigger level, bears will have an edge.

The market internals indicate a marginally higher turnover as the participation levels rose. The number of trades decreased and the average ticket size was higher, indicating a weak buying bias.

The outlook for the markets in the coming session is that of cautious optimism as the markets may see a technical pullback, provided the overseas cues remain positive to neutral.