The markets traded in line with recent patterns, as the bulls were unable to sustain the tempo after a firm opening. The traded volumes were truncated as the retail segment stayed on the sidelines. |
The lower volumes indicate a wait and watch approach ahead of the Fed meet. The market breadth was positive at 2840:1199. The commensurate figures were Rs 15476 crore:Rs 8093 crore. |
The indices have closed at the lower end of the intraday range. The 5880/6065 range forecast for Monday was not tested in either direction. The Delta inflection point on the upside for short term traders is 6042 and until this hurdle is overcome, the bulls are likely to remain subdued. |
The daily Nifty bar charts indicate a lower close even as the session was an "inside day" formation. That indicates a coiling up of momentum which is likely to spring back in either direction in the coming session. |
The intraday levels for Tuesday will be between the 5890 / 6020 and only a sustained move beyond these parameters accompanied with forceful volumes will determine the near term outlook. |
The outlook for Tuesday is that of guarded optimism as players are gearing up for the Fed meet. Trade on light volumes and buy only after the Nifty manages to close above the 6000 levels on higher volumes.
Vijay L. Bhambwani |
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above. |