Business Standard

Markets flounder on Asian cues

TECHNICALS

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Vijay Bhambwani Mumbai

The euphoria witnessed on Tuesday evaporated as the markets marched to the drums of the Asian cues, which were negative. The markets breadth was marginally negative as the combined exchange figures were 1891:1916.

The capitalisation of the breadth on a commensurate basis was also negative as the figures were Rs 6,547 crore: Rs 11,527 crore. The lower volumes indicate a withdrawal by the retail players as the weakness kept participation at bay.

The indices have closed at the lower end of the intraday range, and with lower volumes and negative market breadth. These are signs of tentativeness and lack of clear directional trends. The 4620/4395 range specified for Thursday held as the Nifty fluctuated within these parameters.

 

The western charts indicate an “inside day” pattern as the day’s range was within the previous session – signs of a bigger move in the offing. The coming session is likely to witness a range of 4510 on advances and 4360 on declines – which coincides with a Fibonacci level. The bulls will need a consistent trade above the 4480 pivot and the bears will return if the Nifty keeps below the 4460 levels.

The outlook for the markets on Friday will be cautious as the weekend factor coupled with overseas cues may curb the buying exuberance. Bottom fishing should be avoided for now.

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.

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First Published: Sep 05 2008 | 12:00 AM IST

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