The markets witnessed another day of high volatility, true to our expectations, as the short term bulls unwound positions on advances. The traded volumes were lower as the trader participation was weak.The market breadth was negative as the combined exchange figures were 569:3343. The capitalisation of breadth was also negative on a commensurate basis as the figures were Rs 4246 crore:Rs 18884 crore. The implied volatility was higher at 126 per cent on an annualised basis.The indices have closed at the lower end of the intraday range as selling pressure persisted till the end of the session. The oriental charts indicate a piercing pattern, which makes the outlook cautious.The intraday range specified for Thursday at the 4935 / 5475 has held as these parameters were not tested in either direction.The coming session is likely to witness a range of 5250 on advances and 4810 on declines. The average ticket size per trade on Thursday indicates a selling pressure, predominantly from the retail segment. The lower volumes second that hypothesis.The outlook on Friday is that of continued caution as the weekend factor coupled with the overseas cues will keep the sentiments subdued. Avoid bargain hunting on Friday.
