Helped by the technology sector, the markets recovered from their intraday depths, but closed with losses. Turnover was abysmal for a Monday and that makes the recovery a short-covering induced upthrust.
The combined exchange advance-decline ratio was negative as the figures were 911 : 2762. The capitalisation of the breadth was also negative as the commensurate figures were Rs 2338 crores : Rs 9667 crores.
The indices have closed at the upper end of the intraday range but on lower volumes. That indicates an insipid upmove. The bulls need to establish their presence with significant force to wrest control of sentiments from the bears.
The 2910 / 2700 range advocated for Monday held as the Nifty rebound from 2695 levels. The coming session may witness a range of 2895 on advances and 2705 on declines. The bullish pivot for the coming session will be at the 2780 and the bearish trigger will be a consistent trade below the 2750 mark.
The market internals indicate a lower turnover as the participation levels fell due to the initial selling. The number of trades decreased and the average ticket size was lower, indicating a poor buying bias. The capitalisation of the market was lower in line with a downtick session.
Vijay L Bhambwani
(Ceo - BSPLindia.com )
(He is a Mumbai-based investment consultant)
