The indices have closed at the lower end of the intraday spectrum and that too with weak market internals. Even if the weekend factor is taken into account, these are negative indicators. The intraday range specified for Friday at the 4565 / 4430 was easily violated on the downside even on a closing basis.
The coming session will see a range of 4470 on advances and 4225 on declines. The wide range is due to the high base effect of Friday's intraday range. The 4410 threshold will be a bearish pivot for the day below which the bears are likely to stay in charge of the sentiments.
The outlook for the markets on Monday is that of continued caution as the high inflation numbers are likely to weigh on the market sentiments for some time to come. Unless very strongly positive triggers emerge, Monday is likely to be a downtick day as well.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.