Mahurat session could witness retail buying

TECHNICALS

The markets behaved in an anticipated fashion as the "tohba doji" formation advocated yesterday, played out as expected. The market breadth was negative as the combined exchange figures were 1459:2398.

The capitalisation of breadth was positive as the commensurate figures were Rs 12,433 crore:Rs 10,916 crore. The indices plummeted as the selling pressure continued unabated. The F&O figures for the previous session indicated a marginal fall in net long positions as bulls remained on the back foot.

The indices have closed at the lower end of the intraday range as selling was seen till the fag end of the session. The intraday range specified at 5,700/5,855 was violated on the downside as bulls were unable to hold the Nifty spot above the 5,785 level, which was the pivotal point.

The coming session is likely to see an intraday range of 5,600 on declines and 5,775 - 5,800 on advances. The pivot point for the bulls will be 5,720. The Nifty should remain above this point if the bulls are to stage a comeback.

Watch the volumes above the 5720 levels. No major volume spikes are expected on Friday's session as it is a token one.

The outlook for the markets on Friday is that of cautious optimism as the mahurat session may witness some retail buying. However, no aggressive longs should be initiated at current levels. I wish my investors a very happy diwali and prosperous new year!

Vijay L. Bhambwani
(CEO- BSPLindia.com)

The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com or ( 022 ) 23438482 / 23400345.

Mandatory disclosure: the analyst has no exposure to any scrip recommended above.