Shrugging off the weak overseas cues, the markets managed to end off the intraday lows. The technology sector remained a drag on the markets and witnessed bull unwinding. The domestic markets have shown relative strength and imbibe some hope of relative out-performance in the near term. The market breadth was positive as the BSE & NSE combined advance decline ratio stood at 1866:1704.
The indices have closed in the upper end of the intraday range amidst positive market internals and lower volumes as the weakness kept the retail players at bay. The 2880 support specified for Wednesday has held as the Nifty bounced from the 2878 levels and validated our wave count. The coming session is likely to witness a range of 2840 on declines and 2975 on advances. As long as the Nifty spot remains above the 2910 levels, the bulls may pull the markets higher. Alternately, below the 2885 levels, the bears may prevail.
The outlook for the markets on Thursday is that of cautious optimism as a positive US market may nudge the markets higher. Trade with an intraday view and avoid undues carry over trades for now.