Tech view: Expect a pull back

The markets yesterday as expected opened on a subdued note, but later recovered from their lows. Yesterday's low, now becomes a short-term support for the markets. The Nifty is likely to target 5,100 in the next few days. However, a breach of 4,825 could put last week's low of 4,766 also into danger.

Today, the index is likely to face resistance at 4,935-4,955, while support on the downside could be around 4,865-4,840.

The Sensex ended on a flat note at 16,356. It took support at precisely 16,160 as mentioned in yesterday's update. One should keep a stop at the same level and look to go selective long. However, caution needs to be exercised as the current up move is more of pull back rather than strong up move. A close above 17,100 could ensure trend reversal.