Bulls, bears struggle for supremacy

TECHNICALS

The capitalisation of breadth on a commensurate basis was negative too as the figures were Rs 8,136 crore:Rs 10,784 crore. The bright spot was the technology sector, which rose with strength.

The markets have closed at the median point of the intraday range as the bulls and bears struggled for supremacy. That the market internals were negative is a sign of mild caution. The 4930 / 4740 levels advocated as a range for Friday held as the benchmark index traded within this range.

As was expected, the weekend factor kept the intraday range truncated in comparison to the previous session. The coming session is likely to witness a range of 4920 / 4825.

If the Nifty spot trades above the 4880 levels for most of the session, expect an optimistic undertone. On the flip side, expect weak undertone below the 4855 levels.

The market internals indicate a lower turnover as the participation levels fell. The number of trades decreased and the average ticket size was lower, indicating weaker selling bias. The capitalisation of the market was lower in contrast with a downtick session.

The outlook for the markets on Monday is that of guarded optimism as the bulls are at a disadvantage and need significant firepower to trounce the bears. Trades must be on thin volumes.

Vijay L. Bhambwani
(CEO- BSPLindia.com)

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.