Caution Is The New Buzzword
The markets opened with optimism on Monday and ended the day at lower levels. The Bombay Stock Exchange (BSE) sensex ended at 3,256.86 points (down 22.91), while the National Stock Exchange (NSE) Nifty-50 ended at 1,048.60 (down 08.90). The market breadth was negative as the combined figures on both the exchanges were at 591:1,536. Traded volume on the BSE was at Rs 1,121 crore, while on the NSE it was at Rs 2,303 crore.
The capitalisation of the market breadth was also negative as the numbers were Rs 814 crore:Rs 2,584 crore on a combined exchange basis. The lower traded volume shows a wait-and-watch approach as the markets are seeking a clear direction.
The technology sector is likely to witness further weakness as the Nasdaq is underperforming the Dow Jones.
The indices are heading lower towards their short-term support levels and may proceed to test the recent lows. The 1,018 and 3,165 levels are important support levels for the Nifty and sensex, respectively, which should not be violated, as that will jeopardise the current rally.
In the immediate two-three sessions, the support for the Nifty and sensex will be at 1030 and 3190, respectively. The short-term resistance will be at 1,064 and 3,284 on the Nifty and sensex, respectively.
The outlook for Tuesday