| Market breadth was highly negative as the BSE and NSE combined figures were 635 : 2814 and the capitalisation of the breadth was also negative as the figures on a BSE & NSE combined basis were Rs 1056 crore : Rs 7418 crore. |
| The F&O figures of the previous session show an unwinding of long positions ahead of the August series expiry and a very marginal squaring up of short positions - signalling a continued bearish bias. |
| The indices have breached the 15-week long bullish channel and closed conclusively below it. The momentum is clearly negative and the momentum oscillators have confirmed the bearishness and further downsides are very likely. |
| As advocated yesterday, the 2355 level once violated downwards caused a rapid slide. I feel the 2293-2304 levels will be distinct possibility in the coming session. |
| The upsides resistance will at 2361 level, which will be a major intra-day hurdle for the Nifty in the coming session. Traded volumes are so far in an acceptable pattern, but a fall in the markets with higher volumes will see an accelerated fall in the near term. |
| Trading highlight - the Nifty has fallen below it's rising channel for the second time in four weeks. The previous fall was on July 14 and 15, 2005. |
| The fall this time is with confirmation by the oscillators and a rough and ready support as per retracement theories is at the 2304 mark |
| The outlook for markets on Wednesday is that of absolute caution and as I had forecast, the bulls are likely to continue displaying a lack of buying conviction at lower levels. The only significant cushion to the fall will be short covering by bears at lower levels. Vijay L. Bhambwani |
| SEBI disclosure: the analyst has no exposure to the scrips mentioned above. |
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