The markets opened on a bullish note and ended with losses as the indices turned on a dime. The 3,025 resistance level specified proved to be a nemesis for the bulls and an unsurmountable barrier for short-term momentum players. The benchmark indices closed with little or no gains, with the banking sector the star of the day.
The traded volumes were higher as compared to the previous session, which is a negative indicator for a profit-taking session. The market breadth was negative as the NSE advance decline ratio was 4:7. The capitalisation of the breadth was also negative as sellers outnumbered buyers.
The indices have closed in the lower end of the intraday range with the 3,025 inflection acting as a Gann swing top that must be overcome for the bulls to initiate fresh long positions. The coming session is likely to witness a range of 3,025 on advances and 2,865 on declines. The bullish pivot for the session will be at the 2,975 and the bearish pivot at the 2,940 level below which fresh selling may be encountered.
The outlook for the markets on Wednesday is that of guarded optimism as the bulls will need ample positive triggers to overcome the wall of worry at higher levels. Fresh buying is recommended only after strength is seen above the 3000 Nifty spot.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)
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