The traded volumes were lower as compared to the previous session, which indicates a wait-and-watch approach on the part of the retail players.
The market breadth was negative as the advance decline ratio was 831:3096. The capitalisation of the breadth was negative as the combined figures were Rs 2,933 crore:Rs 11,411 crore.
The indices have closed at the lower end of the intraday range and that too on weak market internals. These are indicators of weak undertone as the bulls remain on the ropes.
The 4875 / 5020 range advocated for Monday was violated on the downside as the selling pressure was signficant, even as the resistance threshold was untested. This indicates a falling range.
The coming session is likely to witness a range of 4935 on advances and 4815 on declines. The bearish pivot for the session will be the 4895 level, below which the bulls will remain at a disadvantage.
The outlook for the markets on Tuesday is that of continued caution as there is lack of buying conviction on declines. Watch the 4800 area for support. Should the same be violated, hold back additional commitments for now.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
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Mandatory disclosure: the analyst has no exposure to the scrips recommended above.
