Tech view: Next session may see 2,690-2,575 range

The markets opened fleet-footed and ended the session with gains on the back of overseas cues. The benchmark indices gained almost 1 per cent at close.

The traded volumes were higher as compared to the previous session, which is a positive indicator for an uptick session. The market breadth was negative as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined advance decline ratio was 1459:2155.

The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 5,855 crore:Rs 4,729 crore. This indicated a buying bias on select index heavy weights.

The indices have closed in the upper half of the intraday range as the buying momentum persisted till the end of the session. The higher volumes and negative market internals indicate a retail selling and mild bear covering. The intraday range specified for Wednesday between the 2770 / 2550 levels has held as the Nifty traded within these levels on an intraday basis. The coming session is likely to witness a range of 2690 on advances and 2575 on declines. The bearish pivot will be at the 2620 level below which the bears may attempt a comeback.

The market internals indicate a higher turnover due to the bear covering. The number of trades were lower and the average ticket size per trade was higher, indicating a weak buying bias. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets on Thursday is that of cautious optimism as long as the the overseas triggers are positive.