| Lacklustre show | |
| TECHNICALS | | Vijay Bhambwani / Mumbai December 04, 2008, 0:23 IST | |
The markets recorded one of the most lack luster sessions as the indices closed with minor changes over the previous session. The traded volumes were marginally higher over the previous session as traders attempted to second guess the direction, albeit unsuccessfully.
The market breadth was marginally positive as the BSE figures were 1180 : 930. The banking sector was a saviour whereas the technology sector lost ground.
The indices have closed in the upper half of the intraday range by a narrow margin. The compressed intraday range shows a "juji" formation on the Japanese candle charts. Coming on the back of a "tonbo" formation yesterday (both consitute varying doji formations), these indications are of a market preparing for a bigger move in either direction.
Traders are cautioned of a difficult market to trade when the directional move is unfolding. The intraday range for Wednesday advocated at the 2735 / 2590 levels have held as the markets traded within a narrow range.
The coming session is likely to witness a range of 2710 - 2745 on advances and 2600 on declines. Declines below the 2600 mark will test the 2560 levels. Bulls will need to keep the Nifty afloat above the 2665 levels consistently to push markets higher.
The oulook for the markets is that of caution as the players are awaiting external developments before initiating fresh trades. Cut back on traded exposure for now.
Vijay L Bhambwani
(Ceo - BSPLindia.com)
(The author is a Mumbai-based investment consultant)
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