The markets opened on a positive note but ended with mild losses as the expiry saw unwinding of longs on upthrusts. The NSE benchmark index lost under 1 per cent at close.
The traded volumes were higher as compared to the previous session, which is a routine indicator on an expiry day.
The market breadth was negative as the BSE & NSE combined advance decline ratio was 1,651:1,947. The capitalisation of the breadth was also negative as the commensurate figures were Rs 5,196 crore: Rs 10,145 crore.
The indices have closed at the lower end of the intra-day range as the short covering eased significantly and bulls failed to buy aggressively. As advocated yesterday, the true price discovery mechanism will kick in after the January expiry.
The intra-day range advocated between 2,900 and 2,785 held as the Nifty bounced from the 2,795 levels. The coming session is likely to witness a range of 2,875 on advances and 2,740 on declines. The bullish pivot will be 2850, above which the outlook will remain positive, and 2830, below which profit sales cum fresh shorts may emerge.
The market internals indicate a rally in the turnover due to the expiry.
