Tech view: Negative news may spoil the party

The markets opened on a cautious note and ended with strong gains as bear covering cum fresh buying lifted values. The benchmark indices gained 3 per cent at close. The traded volumes were lower as compared to the previous session, which is a negative indicator.

The market breadth was positive as the BSE & NSE combined advance decline ratio was 2204:1365. The capitalisation of the breadth was also positive as the BSE & NSE combined figures were Rs 9195 cr: Rs 1234 cr.

The indices have closed in the upper end of the intraday spectrum amidst positive internals. The lower traded volumes remain a minor concern as follow up buying seems to have suffered from lack of conviction on upthrusts.

The 2775 bullish pivot for Wednesday proved to be a watershed level for the markets as the NSE benchmark zoomed after remaining above this threshold. The intraday range specified for Wednesday between the 2800 and 2670 levels was overcome on the upsides as the index closed above the resistance level. The coming session is likely to witness a range of 2920 on advances and 2755 on declines. The bullish / bearish pivots or the session will be at the 2810/ 2785 respectively.

The outlook for the markets on Thursday is that of cautious optimism as the overseas markets need to remain buoyant and no negative news flow should emanate to poop the bullish party.