| The markets opened on an optimistic note and proceeded to turn tail through the day. The benchmark indices lost less than 0.5 per cent, as the bulls preferred to book profits at higher levels. |
| The traded volumes were higher than the previous session, which is a sign of concern. The market breadth was marginally positive as the |
| BSE and the NSE combined figures were 1971 : 1717 and the capitalisation of the breadth was negative as the figures on the BSE and the NSE combined basis were Rs 7417 crs : Rs 8478 crs. The F&O data for the previous session showed a continued buying momentum, as the bulls continued to ramp up fresh net long positions. |
| The indices have closed at the lower end of the intraday band and the traded volumes have been higher. Technical traders will note the bar reversals on the Nifty and the Sensex (the closing is lower than the opening, the intraday high is the significant high) of the entire upmove and on high traded volumes. |
| That marks a temporary halt to the upmove and unless the intraday highs of Tuesday are overcome on higher volumes, a fresh upmove is unlikely. |
| The intraday support for Tuesday was advocated at the 4,185 levels held as the Nifty bounced from the 4,186 mark. However, the intraday high was not even tested and the intraday range was seen compressing. I expect the intraday players to press sales on the indices as long as the indices trade below the swing reversal inflections points as per Tuesday's daily range. |
| The outlook for the markets on Wednesday is that of caution, as the markets may tend to slip and should the overseas cues also be weak, the fall may be exacerbated further. Vijay L. Bhambwani |