| The traded volumes were significantly lower than the previous session as the buying conviction was conspicuous by it's absence. |
| The market breadth was highly negative as the BSE and NSE combined figures were 1020:2288 and the capitalisation of the breadth was positive as the figures on a BSE & NSE combined basis were Rs 7,226 crore:Rs 3,300 crore signaling a buying bias on front-line index counters on short covering. |
| The indices have closed at the upper end of the intraday range, albeit on lower volumes. |
| That is a bearish indicator for the near term trend. We foresee selling pressure emerging again at the 3039 level on the Nifty in the coming session. |
| The support is likely to be seen on the 2958 levels as was advocated on Friday (Nifty bounced from the 2955 levels on Monday). A sizable fall from this threshold level is a pointer towards further weakness. |
| It is imperative that the Nifty rally on higher volumes and shows an increase in open interest on the way up. Only then will a sustainable uptrend be established. |
| The outlook for the markets on Tuesday is that of choppiness as the expiry related demand/supply forces will dominate the sentiments in the near term. |
| Sectorally, technology may out perform the broader markets owing to relative strength and forex considerations. TCS will be a safer bet for the medium term players and small sized long positions maybe initiated in the cash and derivatives segment. Vijay L. Bhambwani |
| SEBI disclosure: the analyst has no exposure to the scrips mentioned above. |
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