| The markets opened on a positive note and ended with 0.5 per cent losses as the indices turned on a dime in the last hour of trade. The anticipated profit sales at higher levels did occur and eroded gains made in the initial part of the session. |
| The market breadth was expectedly negative as the combined exchange figures were 1251:2655. The capitalisation of breadth was positive as the commensurate figures were Rs 22549 cr:Rs 16990 cr. |
| The F&O data for the previous session indicated a rising PCR and the traded volumes were lower on an uptick session - a sign of deceleration/distribution. |
| The indices have closed off their intraday perches and settled at the lower end of the intraday range. The selloff was on higher volumes, adding to my concerns of smart money "fading the rally" in the near term as retail players get sucked into initiating fresh longs at current levels. |
| The resistance of 5960 advocated yesterday was overcome convincingly, though it proved unsustainable on a closing basis. The violation of 5894 pivot confirmed weakness in the undertone. |
| The coming session is likely to witness an intraday range of 5765 on declines and 5985 on advances. The Nifty must stay consistently above the 5950 levels, accompanied with heavy volumes, for the bulls to stage a recovery. |
| Watch the traded volumes as they will indicate selling momentum in case of a decline. Thursday's reading on the money flow oscillator points towards unwinding. |
| The outlook for the markets on Friday is that of abundant caution as the weekend factor, high crude prices, overseas cues and lack of aggressive follow up buying support may limit upsides. Avoid big ticket purchases.
Vijay L. Bhambwani |
| Mandatory disclosure: the analyst has no exposure to any scrip/s mentioned above. |
Upside may be limited
TECHNICALS
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First Published: Nov 02 2007 | 12:00 AM IST
