Market internals show higher turnover

TECHNICALS

The markets witnessed an “evening attack” formation on the oriental charts, which left a hammer formation in its wake. Coming on the back of a “gravestone doji” formation recently, it has limited bullish implications for a short-term player. The bulls received a reprieve as a short squeeze at lower levels lifted values.

The market breadth was negative as the BSE & NSE combined figures were 1190 : 2606. The capitalisation of the same was also negative as the commensurate figures were Rs 8369 Crs : Rs 8419 Crs. The traded volumes were higher as the volatility forced bears to run for cover.

The intraday range specified for Thursday at the 3,450-3,200 was breached on the downside as the Nifty fell below this threshold with a wide margin. The coming session is likely to witness a range of 3,420 on advances and 3,125 on declines.

The market internals indicate a higher turnover as the participation levels rose due to the volatility. The outlook for the markets on Friday is that of cautious optimism as the declines may meet with bear covering. Should the overseas cues turn positive, the bulls may get somewhat bolder. Avoid big-ticket exposure as the weekend session may see curtailed activity.

 

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.