Volumes suggest tentative undertone

TECHNICALS

The market breadth was negative as the combined exchange figures were 1102:2715. The capitalisation of breadth was also negative as the commensurate figures were Rs 4595 crore:Rs 11,664 crore.

The attrition was again led by the banking sector and followed by the midcap stocks. The indices have closed at the lower end of the intraday band, that too with negative market internals.

The higher volumes indicate a tentative undertone. The 3700 / 3960 range specified for Wednesday held as the Nifty traded within these parameters. The coming session is likely to witness a range of on 3730 declines and 3900 in case of advances.

The bullish pivot for the session will be 3870, above which the outlook will be positive and 3840, below which the bears will continue to remain in charge of the near-term sentiment.

The market internals indicate a higher turnover as the participation levels rose. The number of trades increased and the average ticket size was lower, indicating a higher selling bias. The capitalisation of the market was lower.

The outlook for the markets on Thursday is that of continued caution as the US economic data will have a profound bearing on the near-term outlook. Curtail exposure in the market as of 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 any scrip/s recommended above.