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Selling bias seen at lower levels

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Vijay Bhambwani Mumbai
Last Updated : Jan 29 2013 | 12:59 AM IST

The capitalisation of breadth on a commensurate basis was also negative as the figures were Rs 3275 crore:Rs 17118 crore. The turnover was higher as the selling pressure accelerated. The f&o figures for the session indicated a higher turnover as the bears emerged with daggers drawn.

The indices have closed at the lower end of the intraday range as the selling pressure accelerated. The higher turnover indicated a selling bias even at lower levels. The intraday range advocated for Friday at the 5030/5130 was violated on the downside by a huge margin.

The coming session is likely to witness a range of 5030 on advances and 4900 on declines. The 5015 level will be a bearish pivot for Monday, below which the players may expect continued selling pressure.

The market internals indicate a higher turnover as the participation levels rose. The number of trades increased and the average ticket size was higher, indicating a selling bias by retail hands. The capitalisation of the market was lower in line with a downtick session.

The outlook for the markets on Monday is guarded as the bulls are unlikely to come back in force in the absolute near term.

Vijay L. Bhambwani
(CEO- BSPLindia.com)

The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com

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

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First Published: May 10 2008 | 12:00 AM IST

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