Small buying may cause upthrust

The markets opened on a placid note and ended with minor changes as the players lacked a clear sense of direction. The benchmark indices gained under 0.50 per cent at close. The traded volumes were lower as compared to the previous session, which is a negative indicator for an uptick session.

The market breadth was negative as the BSE advance decline ratio was 1073:1299. The capitalisation of the breadth was also negative the sellers outnumbered buyers.

The indices closed in the upper half of the intraday range and on negative market internals. The lower traded volumes indicate a lack of buying conviction. The banking stocks continued to remain a drag on the markets even as technology stocks outperformed on bear covering and fresh buying. As was advocated yesterday, the downward momentum was slowing as the bears eased their presence.

The intraday range advocated for Thursday at the 2850-2680 held as the Nifty traded within these. The coming session being the weekend, the bulls are unlikely to enhance commitments en masse. The outlook for the markets on Friday is of cautious optimism as markets are trading on thin open interest and small amounts of buying may cause an upthrust.

Vijay L Bhambwani
(Ceo - BSPLindia.com)

The author is a Mumbai-based investment consultant