The capitalisation of the breadth on a commensurate basis was negative as the figures were Rs 4487 cr : Rs 12741 crs. The F&O data for the session indicated a lower turnover as the bulls abstained from enhancing commitments over the weekend.
The markets have closed at the lower end of the intraday range as the bears prevailed over the bulls. That the market internals were negative is a sign of weakness in the underlying sentiments. The 4770 / 4580 range advocated for Friday held as the index traded within these parameters.
The coming session is likely to witness a range of 4710 on advances and 4545 on declines. The 4665 level will be a bearish threshold below which the bears will dominate the sentiments. The Nifty is now well entrenched in a falling channel which has bearish implications.
The market internals indicate a lower turnover as the participation levels fell. The number of trades decreased and the average ticket size was lower, indicating a weak selling bias. The capitalisation of the market was lower in line with a downtick session.
The outlook for the markets on Monday is that of caution as the bulls are lacking large scale buying conviction. Avoid big ticket trades for now.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.
