The markets closed at the lower end of the intraday range as the bulls continued to remain under pressure and preferred to unwind at higher levels. The "morning attack" formation as per oriental chart reading fizzled out as the buying conviction was sorely lacking.
The market internals were positive, which is a mildly positive sign. The 4560 / 4470 range advocated for Monday was overcome as the Nifty spot traded above these parameters on overseas cues.
The coming session is likely to witness a range of 4620 on advances and 4485 on declines. The 4565 level will be a bearish threshold, below which the bears will continue to dominate the sentiments on Tuesday.
The market internals indicate a lower turnover as the participation levels fell marginally due to the scepticism in the bull camp. The number of trades decreased and the average ticket size was higher, indicating a weak buying bias. The capitalisation of the market was higher in line with an uptick session.
The outlook for the markets on Tuesday is that of caution as the bulls are devoid of the firepower needed to boost markets upwards. Avoid long trades for now.
Vijay L. Bhambwani
(CEO- BSPLindia.com)
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.
