Tech view: Price, volumes to decide trend

The markets opened on a bullish note and slid on lackluster buying support from the bulls. The traded volumes spurted as the initial bullish fervour was met by relentless selling on upthrusts.

The market breadth remained positive as the combined exchange figures were 2718:1166. The capitalisation of the figures on a commensurate basis were also positive as the numbers were Rs 15493 crore:Rs 6021 crore.

The F&O data for the session indicated some selling on advances, though the ferocity was lesser than the previous session.

The indices have closed at the lower end of the intraday range and the 4750 / 5000 band advocated for Wednesday was not tested in either direction as the daily range was truncated.

The positive market internals indicate a continued optimism in undertone and the higher volumes are a further indication of bullishness.

The coming session is likely to witness a range of 4930 on advances and 4840 on declines. Should the 4930 level be overcome convincingly, with higher volumes, 4990 becomes a possibility.

The bulls appear to be preparing for a push upwards and the combination of price / volumes / open interest assumes significance in such a scenario.

The outlook for the markets on Thursday is that of optimism, subject to overseas cues. Neutral to positive overseas markets will see the bulls consolidating their grip on the markets.