Global factors will dictate the trend

TECHNICALS

The market breadth was negative as the combined exchange figures were 1395:2383. The capitalisation of the breadth on a commensurate basis was also negative as the commensurate figures were Rs 6236 crore:Rs 7585 crore.

The indices have closed at the lower end of the intraday range as the bulls were clearly on the defensive. The market internals indicate a continued bias towards unwinding on upthrusts. The coming session is likely to witness a range of 3970 on declines and 4110 on advances.

The bulls will have to keep the average traded price of the Nifty above 4075 to keep the sentiment bullish. If the Nifty maintains this level, accompanied by forceful volumes, an upward extension may be likely upto 4140-4160.

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 muted selling bias. The capitalisation was lower in line with a downtick session.

The outlook for the market on Tuesday is that of guarded optimism as the overseas cues are likely to have a larger-than-life influence in the absolute near term. Avoid big ticket long 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.