After opening on a bullish note, the markets nose-dived as follow up buying support was missing. The overseas futures turned negative, further adding to the weakness. The market breadth was negative as the BSE figures were 970 : 1160. The attrition was led by banking and midcap sectors which saw unwinding cum short selling. The turnover was unusually low for a Monday, which makes the immediate scenario lack luster.
The indices have closed at the lower end of the intraday range and on weak market internals. The bulls can at best derive marginal comfort from the lower volumes as markets are known to drift on poor volumes. The relief is the absence of a panic selling scenario. The intraday range specified at the 2810 / 2680 levels for Monday has held more or less as the Nifty sank to the 2670 levels and closed near the specified support. The coming session is likely to witness a range of 2780 on advances and 2570 on declines. The bearish trigger for the session will be the 2730 below which the bears will prevail over the bulls. The outlook for the coming session is that of caution as the markets are witnessing poor participation and high impact costs. That is likely to result in higher swings. Avoid big ticket trades for now.
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