Tech view: Do not enhance exposure

The markets opened on an optimistic note and ended off the intra-day highs as the bulls were unable to offer meaningful support. The benchmark indices ended with marginal gains at close on bear covering.

Traded volumes were higher compared to the previous session, which is a bearish indicator. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1,031:2,552. The capitalisation of the breadth was also negative as the BSE & NSE combined figures were Rs 5,400 crore: Rs 5,705 crore.

The indices have closed at the median level of the intra-day range on negative market internals and higher volumes. The bullish pivot at 2,750 was not even tested and the upsides were laboured.

The intra-day range of 2,775/2,625 held as the Nifty traded within these parameters. The coming session is likely to witness a range of 2,775 on advances and 2,640 on declines. The bullish pivot will be 2,725, above which the bulls may push the markets higher and 2,690, below which the market will be bearish.

The outlook for the markets on Friday is that of caution as the weekend factor and the overseas triggers will see a lower buying enthusiasm. Do not enhance exposure levels.