Tech view: Weekend blues likely

The markets opened on an optimistic note and ended with gains after a see-saw pattern as the impending expiry of the February derivatives series witnessed bear covering.

The buying impetus was aided by gains in the overseas markets, which prompted profit booking by the short term bears.

The traded volumes were marginally changed over the previous session and the market breadth was slightly positive as the BSE figures were 1,459 : 1,251.

The indices have closed at upper end of the intraday range as the buying momentum persisted till the fag end of the session. Historically, pre-expiry sessions tend to have a short covering bias, especially in months where declines have been substantial.

The 5,060 level which was advocated as a support has held and the 5,235 level suggested as a resistance was more or less accurate as the bulls retraced from that point.

The intraday range for Friday will be 5,120 on declines and 5,270 on advances. Watch the traded volumes above 5,250, which will be a litmus test for bulls in the near term.

The outlook for the markets on Friday is that of choppiness as the weekend factor coupled with overseas cues will impact the near term sentiment. Avoid big ticket trades for now.