The markets opened on a nervous note and ended with widespread losses as selling accelerated in the final hour of trade. The benchmark indices lost almost 2 per cent at close. The traded volumes were higher as compared to the previous session, which is a negative indicator for a downtick session.
The market breadth was negative as the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) combined advance decline ratio was 1119:2470.
The capitalisation of the breadth was also negative as the BSE & NSE combined figures were Rs 1,054 crore: Rs 8,665 crore.
The indices have closed in the lower half of the intraday range as selling gained momentum in late trade. Higher volumes and negative market internals add to the weight of bearish evidence, pointing to a fresh bout of declines.
The intraday range specified for Tuesday between the 2740 and 2600 levels has held as the Nifty tested the 2611 levels on an intraday basis.
The coming session is likely to witness a range of 2670 on advances and 2550 on declines. The bearish pivot will be at the 2640 level below which the bears will get bolder.The outlook for the markets on Wednesday is of caution as the Nifty spot is below the 2650 support level. Should the overseas triggers be negative, expect a weak session.
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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)
