Tech view: Downside may not be significant

The markets behaved along expected lines as the upsides were accompanied by a lack of buying conviction among the bulls.

The indices opened firm only to turn tail and end off their intraday perches. The traded volumes perked up - negative indication on a down tick session.

The market breadth was marginally positive as the combined exchange figures were 2,172 : 1,765. The capitalisation was negative as the commensurate data was Rs 8,397 crore : Rs 9,960 crore.

The indices have closed at the lower end of the intraday band and that too with selling across select front-line counters. The positive market breadth indicates retail buying.

But the scattered amounts have little bearing on trend determination. The intraday range of 5,200/ 5,355 was tested on the upside as the high on the Nifty was 5,368.

The coming session is likely to witness a range of 5,350 on advances and 5,215 on declines. The 5,320 level will be the bullish pivot above which the day traders will have to maintain the Nifty spot if the session is to belong to the bulls. Watch the traded volumes for action above the 5,320 levels.

The outlook for the markets on Wednesday is that of continued caution though the downsides may not be significant. Wait for the bulls to display leadership before buying with conviction.