Tech view: Global cues a major determinant

The markets opened with a gap down and closed off the intraday lows as some bear covering was seen on declines. The traded volumes were marginally higher as the intraday volatility and wider range saw broader trader participation.

The market breadth was weak as the combined exchange figures were 1,719 : 2,241 and the capitalisation of breadth was also negative on a commensurate basis, with the figures being Rs 8,465 crore : Rs 11,595 crore.

The indices have closed at the lower end of the intraday range and on negative market internals. The intraday range specified for Wednesday at 5,430 / 5,540 was violated on declines as the selling pressure was significant.

The coming session is likely to witness an intraday range of 5,190 on declines and 5,450 on advances. Watch the traded volumes in case of an upthrust beyond the 5400 - 5420 levels, which need to spike higher if the bulls are to extend their initiative over the bears.

The market internals indicate a marginally higher turnover as the participation levels rose mildly. The number of trades increased and the average ticket size was lower, indicating the absence of stronger hands. The capitalisation was lower in line with a downtick session.

The outlook for the coming session remains guardedly optimistic and much will depend on the overseas cues. Avoid big ticket trades for now.