| The benchmark indices lost over 0.50 per cent at close as the week ended on a somber note. |
| The traded volumes were in line with Thursday's figures, reiterating the lack of panic sales. |
| The market breadth was highly negative as the ratio of advancing to declining shares on the Bombay Stock Exchange and the National Stock Exchange combined stood at 1271 : 2070. |
| The capitalisation of the breadth was also negative as the figures on the two bourses taken together stood at Rs 2,771 crore (advances): Rs 3,691 crore (declines). |
| The indices have closed lower for the day with the critical short-term support levels being violated at 2098 levels on Nifty. |
| As I have been stating, the negative divergence on the charts has been taking its toll and the index was giving an advance warning to the bulls as was stated in this segment yesterday also. |
| The penultimate support for the traders will be at 2063 levels on the Nifty spot. As long as the Nifty remains above this level, the uptrend remains intact on the short-term charts. |
| On the upsides, traders may note that the 2098/2108 levels remain immediate upside objective points. |
| Traded volumes must perk up on upmoves to indicate a buying momentum from the retail segment. |
| The outlook for the markets on Monday is that of cautious optimism and barring any negative news flow over the weekend, there should be a pullback rally in the coming session. |
| It maybe remembered however, that pullback rallies are just that "" temporary pullbacks, which terminate without a warning. |
| Stock-specific activity maybe seen on VSNL, which is likely to remain bullish as long as it remains above Rs 224 on the daily charts. Traders may buy in the cash and derivatives segments in small lots and a target price of Rs 236-238 in a conducive market scenario. Vijay L. Bhambwani |
| Sebi disclosure: the analyst has no exposure to the scrips mentioned above. |
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