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| The important short-term supports of 1580 and 4855 were violated and the closing levels were significantly lower than these levels.
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| The market breadth was negative as the advances to declines figures on the BSE and the NSE combined were 948 : 1591.
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| The capitalisation of the breadth was highly negative as the combined figures were Rs 1,313 crore : Rs 55,413 crore.
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| The traded volumes were steady as the numbers were in line with the 10-day average.
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| The indices have violated the short-term supports and have closed lower. The immediate supports for the indices are at the 1527 and 4760 on the Nifty and the Sensex, respectively. Should these levels be violated in the next two sessions, the markets are likely to head lower.
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| On the upsides, expect the short term resistance to come at the 1557 and 4860 levels. The index heavyweights are appearing weak and that is a sign of concern.
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| The uptrend though weakening, is still intact and players need to keep their ears to the ground and continue to monitor the price / volume action for clues to the market direction.
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| Sector-specific activity is likely to be seen on the software and select cement stocks which are displaying higher relative strength.
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| The derivatives segment is showing a continued tendency to unload bull positions at higher levels.
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| It maybe noted that the November series will be drawing to a close in 6 more sessions and the routine activity of squaring up / switching to the next months series will see a downward pressure on the prices.
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| The outlook for the markets on Thursday is that of abundant caution as the undertone is distinctly brittle.
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| Upsides are likely to be exit points for nervous bulls and short term players. That will limit the upsides significantly and force a constant supply on the overhead.
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| Among stocks, Gujarat Ambuja is bucking the trend and showing signs of revival in the short term. Buying in a firm market above the Rs 275 resistance is advisable in the derivatives and cash segments.
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| Wipro has a good short-term support at Rs 1,400 levels and as long as this level is not violated, stay long in the short term. Please note buying is recommended only in a firm market and that too in minimal lots.
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Vijay Bhambwani
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| CEO - BSPLindia.com
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| The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com or (022) 23438482 / 23400345.
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| SEBI disclosure: The author has no outstanding exposure in any of the securities mentioned above. |
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