Global cues to dictate sentiment

TECHNICALS

The market breadth was negative as the combined exchange advance decline ratio was 1002:2835. The capitalisation of breadth was also negative as the commensurate figures were Rs 1622 crore: Rs 15,848 crore.

The indices closed at the lower end of the day's spectrum and the market internals were negative after a brief promise yesterday. The bears came back with daggers drawn as the market internals and the price / volumes / open interest co-relation indicate.

The 3935 / 4225 range advocated for Thursday was violated on the downside as the index breached the support even on a closing basis.

The coming session is likely to witness a range of 4065 on advances and 3775 on declines. The Nifty spot trading consistently below the 3960 levels will see a bearish outlook extending in the markets.

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

The outlook for the markets on Friday is that of caution as the bulls are likely to be subdued on weekend and overseas considerations. Avoid big ticket trades for now.

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.