Tech view: Optimistic undertone indicated

The markets opened cautiously and ended up with sizable gains as late buying aided the bulls. The traded volumes were lower on the NSE as the participation levels were wanting.

The market breadth was positive as the combined exchange figures were 2687:1134. The capitalisation of the breadth was positive as the commensurate figures were Rs 11009 crore: Rs 5185 crore.

The indices closed at the upper end of the intraday range as the bulls remained in charge. The positive market internals indicate an optimism in undertone. The 4650 / 4765 range specified for Wednesday was not overcome on either side, even on an intraday basis, validating our wavecount.

The poor traded volumes remain a cause for concern. The coming session is likely to witness a range of 4690 / 4820. Watch the activity above the 4725 levels which is the bullish pivot for the coming session.

The market internals indicate a slightly lower turnover as the participation levels fell. The number of trades increased and the average ticket size was lower, indicating marginal buying enthusiasm. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets on Thursday is that of cautious optimism as players are attempting to regroup on the long side. Overseas cues remaining positive will be a buy trigger for the coming session.