Markets remain tentative

TECHNICALS

The markets closed with minor gains after exhibiting weakness for most part of the session. The traded volumes remained subdued due to the weekend considerations.

The market breadth was mildly negative as the BSE figures were 1323 : 1405. The capitalisation of the breadth was positive as buying was seen in heavyweights, possibly by stronger hands. The indices gained under quarter of a per cent - signs of slowing in the upward momentum in a largely positive week.

The markets have closed at the upper end of the intraday band, but made a lower top and bottom formation - a sign of tentativeness. The oriental charts indicate a crude hammer as the bulls and bears fought for supremacy. The intraday range specified at 4580 / 4440 for Friday was not tested in either direction as the intraday range was compressed due to the weekend factor.

The coming session is likely to witness a range of 4420 on declines and 4600 on advances. The bullish pivot for the session will be the 4510 level above which the Nifty spot must remain to be firm. The bearish pivot will be the 4490 below which the bears will remain in control.

The outlook for the markets on Monday will remain that of caution as the bulls are hesitant about providing big-ticket support on declines. Avoid big ticket exposure till the bulls decide to get aggressive.

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.