The markets opened on a cautious note and ended with widespread losses as domestic players unwound longs. The overseas cues turned negative and exacerbated the selling momentum. The market breadth was negative as the Bombay Stock Exchange figures were 699:1,686.
The capitalisation of the breadth was also negative as the sellers outnumbered the buyers. The traded turnover was higher which is a negative indicator for a downtick session.
The indices have closed in the lower end of the intraday range as the markets witnessed a surrendering of long positions by embattled bulls. The negative internals and higher turnover add to the bearish weight of evidence.
The 2690/2575 range specified for Thursday was violated on the downside as the Nifty tested the 2565 levels. The coming session is likely to witness a range of 2640 on advances and 2500 on declines.
The bearish pivot for the session will be at the 2600 level below which the bears will command over the bears.
The outlook for the markets on Friday is that of caution as the weekend session will see limited buying support from the bulls. Avoid bargain buying for now.
Vijay L Bhambwani
(CEO - BSPLindia.com)
The author is a Mumbai-based investment consultant and invites feedback at
vijay@BSPLindia.com