The markets flattered yet deceived bulls as the initial optimism turned to fear as higher levels proved to be unsustainable. Traded volumes contracted and the market breadth was negative as the combined exchange figures were 981:2837. The capitalisation of the breadth was also negative as the commensurate figures were Rs 572 crs : Rs 13,615 crs.
The weekend session was expected to be low key where turnover was concerned, but the decline in values underscored a lack of conviction in the markets. The indices have closed in the lower half of the intraday range and that too on weak market internals.
The intraday range specified for Friday at the 3420/ 3125 levels was violated on the downsides as the Nifty closed below the support specified. The bearish pivot was not overcome and the bulls were heavily compromised thereafter. The coming session is likely to witness a range of 3250 on advances and 2885 on declines. As long as the Nifty remains below the 3160 levels, the bears will command the session.
The outlook for the markets on Monday is that of caution as the indices, though appearing oversold, are under attack from lack of buying rather than fresh selling.
Vijay L. Bhambwani
(CEO – BSPLindia.com)
The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.
