The markets opened on a buoyant note and ended with losses as was the recent trend. The benchmark indices lost over 2 per cent at close. Traded volumes were lower as compared to the previous session, which is a routine phenomena during the festive season. The market breadth was negative as the BSE & NSE combined advance-decline ratio was 1,206 : 2,452. The capitalisation of the breadth was also negative as the BSE & NSE combined figures were Rs 2,064 cr : Rs 7,723 cr.
The indices have closed at the lower end of the intraday range as the selling pressure persisted till the fag end of the session. The market internals indicated a lack of buying conviction in the bull camp as per expectations on a weekend session.
The intraday range specified for Friday at the 2850 / 2960 levels held as the Nifty traded within these parameters, validating our wave count. The coming session is likely to witness a range of 2,925 on advances and 2,760 on declines. Traders will note the falling daily ranges which indicate overhead supply. Bears will dominate bulls as long as the Nifty spot trades below the 2,890 levels consistently. Watch this threshold keenly on Monday.
The outlook for the markets on Monday is that of abundant caution as the markets are displaying a brittle undertone as the rank and file player awaits a secular upthrust before enhancing long commitments. Till this fence sitting attitude persists, avoid fresh purchases.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)