Players caught in a dilemma

TECHNICALS

The overseas cues ensured a choppy session as the domestic markets opened under pressure, see-sawed between positive and negative territories, only to end with losses on bull unwinding. The indices lost about 0.50 per cent on lower volumes as the retail participation was wanting.

The BSE market breadth was negative as the figures were 1845:805. The daily bar chart indicates a key reversal as the close was below the open of the day - a cause for mild concern on the fist day of the week.

The indices lost ground, accompanied with negative market internals and lower volumes. Poor volumes are a minor mercy at best, as markets decline extensively on lower volumes. The intraday range specified for Monday between the 4530 / 4300 levels held as the Nifty traded well within these parameters.

The coming session is likely to witness a range of 4315 on declines and 4485 on advances. The bullish pivot will be 4410. On the flip side, a consistent trade below the 4390 pivot will be a bearish trigger. Traded volumes must expand for upthrusts to be sustainable.

The outlook for the coming session is that of caution as the bull camp seems to be divided on buying aggressively. Avoid big ticket longs 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 the scrips recommended above.