Tech view:Oversold conditions may trigger a bounce

The capitalisation of the breadth on a commensurate basis was negative too as the figures were Rs 1,925 crore:Rs 18,142 crore. The F&O data for the session indicated a higher turnover.

The markets closed at the lower end of the intraday range as the bulls were at a major disadvantage. That the market internals were negative is a sign of continued concern. The 4780 / 4650 range advocated for Wednesday was violated on the downsides as Nifty closed below the threshold. The coming session is likely to witness a range of 4690 on advances and 4485 on declines.

The 4675 level will be a bullish threshold above which the bulls will see some relief intraday.

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

The outlook for Thursday is that of guarded optimism as the market appears to be near an oversold level and may attempt a small bounce.