The markets posted a weak session as the selling pressure continued unabated. The crux of the selling was felt on the technology and midcap stocks even as buying support evaporated on these segments.
The combined exchange advance-decline ratio was negative as the figures were 1269 : 2464. The capitalisation of the breadth was also negative as the commensurate figures were Rs 2,976 cr : Rs 11,317 cr.
The indices have closed at the lower end of the intraday range and on marginally improved volumes. That indicates a persistent selling bias. The weekend factor kept buying support under check and the 2960 resistance for Friday held as the Nifty retraced from the 2939 levels.
The coming session is likely to witness a range of 2910 on advances and 2700 on declines, indicating a declining range. The bullish pivot for the coming session will be at the 2880 and the bearish trigger will be a consistent trade below the 2830 threshold.
The market internals indicate a marginally higher turnover as the participation levels rose due to the selling. The number of trades fell and the average ticket size was higher, indicating a concerted selling bias.
The capitalisation of the market was lower in line with a downtick session. The outlook for the coming session is of caution as the bulls are at a severe disadvantage. Should the overseas cues continue to be negative, expect fresh selling.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(He is a Mumbai-based investment consultant)
