Advances Are Exit Options

The bourses started off on a weak note and ended the day with extreme pessimism.

The Bombay Stock Exchange (BSE) sensex closed at 3048.72 (down 66.72 points) and the National Stock Exchange (NSE) Nifty 50 wrapped up at 978.20 (down 22.40 points).

The market breadth was very negative as the advances to declines figures on the two exchanges combined stood at 469:1489.

Traded volume on the BSE was Rs 840 crore, while on the NSE it stood at Rs 1,872 crore.

The capitalisation of the market breadth was even more negative as the numbers were Rs 70 crore: Rs 2,638 crore on the two bourses combined.

The poor traded volumes are symptomatic of a bear market wherein retail participation is lacking and the fall is with a very negative market breadth.

Most of the index heavyweights are fragile and that signals a further weakness.

All advances are, therefore, selling opportunities. The outlook for Tuesday is that of extreme caution as the Nifty and the sensex have cracked below their important short-term supports and look precariously poised for further falls.

Stock specific activity maybe seen in Hindustan Lever as the share is likely to be the main culprit in bring down the indices due to the sheer force of it