Tech view:Consolidation within a narrow range

The markets opened on the back foot in tandem with the global cues. Bear-covering cum fresh buying took place towards the close.

The market breadth was positive as the BSE and NSE combined advance decline ratio was 2152:1761. The turnover was higher than the previous session due to the impact of rollovers. The derivatives data indicates routine pre-expiry short covering.

The indices have closed at the upper end of the intraday range and that too on positive market internals. That the 4760/4890 range advocated yesterday was not violated in either direction indicates consolidation within the advocated range.

The coming session is likely to witness a range of 4750 on declines and 4900 on advances. The level of 4850 will be the bullish pivot for Friday.

The bulls will have to maintain the Nifty above this point if the upthrust is to sustain. Expect limited buying on Friday as bulls are likely to postpone their buying decisions on account of the weekend factor.

The outlook for the markets on Friday is that of guarded optimism. The new derivatives cycle should see the price discovery mechanism begin in earnest as players take fresh positions in the coming 5-8 sessions. Trade light.