The markets continued on a downward trajectory initiated yesterday as the bulls remained on the backfoot. The benchmark indices lost nearly 3 per cent at close today.
The traded volumes were lower as compared to the previous session, which is a routine indicator as per recent trends. The market breadth was negative as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined advance decline ratio was 890:2701. The capitalisation of the breadth was also negative as the sellers outnumbered the buyers.
The indices have closed in the lower end of the intraday range as the selling pressure persisted till the end of the session. The banking and technology sectors continued to be a drag on the markets.
The decline was accompanied by negative market internals and poor traded volumes. These are signs of a waning participation as the retail sector is abstaining from fresh commitments.
The intraday range advocated at the 2920/2770 has held as the Nifty has closed at the specified support threshold. The coming session is likely to witness a range of 2700 on declines and 2845 on advances. The bullish pivot for the session will be at the 2810 level and the bearish pivot will be at the 2790 levels.
The outlook for the markets on Wednesday is that of caution as the bulls are at a serious disadvantage and should the overseas cues remain negative, the domestic markets may see fresh declines.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
The author is a Mumbai based investment consultant and invites feedback at vijay@BSPLindia.com