Next session may see 2825-2720

The markets opened on an optimistic note and ended with losses as the bulls failed to hold their own against the selling pressure on advances.

The benchmark indices lost over 0.5 per cent at close today.

The traded volumes were low as compared to the previous session, which is an indicator of retail withdrawal. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1403:2234. The capitalisation of the breadth was also negative as the BSE & NSE combined figures were Rs 2,943 cr:Rs 6,089 cr.

The indices have closed in the lower end of the intraday range and that too on lower volumes and poor market internals.

As I had put forth yesterday, the bulls still lack a clear buy mandate as the upsides are laboured and big ticket buying is sorely missing.

The technology sector was the biggest drag on the markets and the intraday range advocated for Thursday between the 2880 / 2740 levels has held as the Nifty traded within these parameters.

The coming session is likely to witness a range of 2825 on advances and 2720 on declines. The bullish trigger will be the 2785 and bearish trigger will be the 2770 level. Being a weekend session, big ticket buying maynot be forthcoming.

The market internals indicate a lower turnover on account of the weakness. The number of trades were lower and the average ticket size per trade was also lower, indicating a weak buying bias.

The capitalisation of the market was down in line with a downtick session.

Vijay L Bhambwani
(Ceo - BSPLindia.com)
The author is a Mumbai based investment consultant and invites feedback at
vijay@BSPLindia.com