Tech view: Bears sell at higher levels

The markets have closed at the lower end of the intraday range as the bears remained in command and preferred to press shorts at higher levels. The initial strength displayed by the markets fizzled out as the spot Nifty reacted from the channel top formation. The 4720 / 4585 range advocated for Wednesday was violated on the downside as the intraday range was under pressure.

The coming session is likely to witness a range of 4650 on advances and 4510 on declines. The 4610 level will be a bearish threshold, below which the bears will continue to dominate the sentiments on Thursday.

The market internals indicate a higher turnover as the participation levels rose due to the unwinding bias. The number of trades increased and the average ticket size was higher, indicating a selling bias. The capitalisation of the market was lower in line with a downtick session.

The outlook for the markets on Thursday is that of caution as the bulls are on the ropes and any negative overseas cues can weaken sentiments further. Avoid big ticket trades for now.