The markets underwent a tumultuous trading pattern as the indices gyrated wildly to the events of the day. The “daki” pattern, according to the oriental charts, was the overwhelming force of the day, but was negated briefly during the session.
This divergence added to the confusion and trader losses as the markets turned on a dime in the last part of the session. The traded volumes expanded and the market breadth was negative as the combined exchange figures were 846 : 2922. The capitalisation of the breadth was also negative as the commensurate figures were Rs 2810 Crs : Rs 11384 Crs.
The indices have closed in the lower half of the intraday range and on weak market internals. The higher traded volumes indicate the trap laid for the retail traders. The intraday range specified for Thursday at the 3,170-2,935 has held loosely as the Nifty bounced more or less from the specified support. The coming session is likely to witness a range of 3,050 on advances and 2,810 on declines. As long as the Nifty remains below the 2,980 level, the session will be dominated by the bears.
The outlook for the markets on Friday is that of abundant caution as the weekend session is likely to see limited buying activity — barring unforeseen circumstances.
Avoid big-ticket trades in either direction.
Vijay L. Bhambwani
(CEO – BSPLindia.com)
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The author is a Mumbai-based investment consultant and invites feedback at vijay@BSPLindia.com
Mandatory disclosure: the analyst has no exposure to any scrip/s recommended above.
