The Nifty was unable to hold above the 3,005 bullish trigger advocated yesterday and therefore closed with losses. The traded volumes were higher compared with the previous session, which is a negative sign on a downtick session. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1293 : 2457. The capitalisation of the breadth on a commensurate basis was also negative as the figures were Rs 4231 Crs : Rs 13431 Crs.
The indices have closed in the lower half the intraday band and on negative internals. The intraday band of 3,100-2,980 levels advocated for Wednesday was overcome on the downsides as the index closed below the threshold. The coming session is likely to witness a range of 3,030 on advances and 2,850 on declines. The bullish pivot will be at the 3,030, above which the Nifty spot must remain if the bulls are to revive. Conversely, a consistent trade below the 2,990-level will trigger fresh selling.
The market internals indicate a higher turnover as the participation levels rose due to the weakness. The number of trades increased and the average ticket size was higher, indicating a selling bias. The capitalisation of the market was lower in line with a downtick session.
The outlook for the markets on Thursday is that of caution as the bulls may be forced to the ropes by the bears in the near term. Avoid big-ticket exposure.
Vijay L Bhambwani
(Ceo - BSPLindia.com )
The author is a Mumbai-based investment consultant
