After opening on a strong note, the markets turned tail at higher levels as the bulls locked in gains at upthrusts. The higher traded volumes indicate an unwinding bias as short-term players refrained from enhancing long positions.
The market internals were negative as the combined exchange market breadth was 1810 : 2129. The market capitalisation on a commensurate basis was marginally negative too as the figures were Rs 12196 crore:Rs 12423 crore. The f&o data indicated a higher turnover as the trader participation ramped up.
The indices have closed at the lower end of the intraday spectrum as profit sales persisted till the fag end of the session. The negative internals indicate a pressure at higher levels as the Nifty spot encountered resistance near the specified mark of 4605 in yesterday’s note.
The coming session is likely to witness a range of 4590 on advances and 4430 on declines. The bearish pivot will be 4550, below which the bears will return with strength in the absolute near-term.
The outlook for the markets in the coming session is profit-taking at higher levels as the bulls are on the defensive. The daily chart has indicated a “grave stone doji” on the oriental charts. These are indicators of caution. Avoid aggressive longs on Thursday.