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Weak market internals call for caution

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

The traded volumes were marginally lower compared to the previous session, which is a sign of withdrawal of retail traders. The market breadth was negative as the combined advance decline ratio was 1350:2524.

The capitalisation of breadth was negative as the figures were Rs 2,994 crore:Rs 16,335 crore.

The indices have closed at the lower end of the intraday range and that too with weak market internals. The 5060 support advocated for the Nifty was violated as the index tested the 5010 level and closed marginally above it. The coming session is likely to witness a range of 5080 on advances and 4950 on declines.

The 5050 level will now act as a resistance pivot, below which the bears are likely to have an upper hand in the coming session.

The outlook for the markets on Friday is that of abundant caution and ample overhead supply. The priority in the coming days should be capital preservation rather than appreciation.

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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 23 2008 | 12:00 AM IST

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