Lack of buying conviction

TECHNICALS

The capitalisation of breadth on a commensurate basis was also negative as the figures were Rs 7449 crore:Rs 10397 crore.

The turnover was lower as retail players abstained from whole hearted participation. The derivatives figures for the session indicated a lower turnover as falling market saw enhanced scepticism.

The indices have closed at the lower end of the intraday range as the selling pressure persisted till the end of the session. The lower turnover indicated a lack of buying conviction even at lower levels.

The intraday range advocated for Thursday at the 5065 / 5190 held as the Nifty retraced from the 5062 levels. The coming session is likely to witness a range of 5130 advances and 5030 on declines. The 5095 will be a bearish pivot for Friday, below which the players may expect selling pressure.

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 a selling bias by retail hands.

The capitalisation of the market was lower in line with a downtick session. The outlook for the markets on Friday is guarded as the weekend considerations may curtail the exuberance factor.

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.