Market may come under pressure

The markets opened on a positive note, but yielded to the weak Asian cues. Sensing weakness, the bears pressed sales and caused technical stop losses to be triggered en masse.

The market breadth was positive as combined exchange figures were 2454:1631. The capitalisation of breadth was also positive as the commensurate figures were Rs 16898 crore:Rs 14430 crore.

The indices have closed at the lower end of the intraday range and that too on steady volumes, on higher end of the 10 day average.

The positive market breadth is a minor plus as the Nifty closed below the 6105 pivot.

The coming session is likely to witness a range of 6150 on advances and 5965 on declines. That indicates a falling daily range and some profit taking bias on declines. Watch the 6095 bearish pivot below which the Nifty may continue to remain under pressure in the absolute short term.

The number of trades have risen accompanied with a decline in the average ticket size, indicating a lack of institutional support.

The outlook for the markets on Friday is that of continued caution as the weekend factor coupled with overseas cues will dominate the near term sentiment.

Vijay L. Bhambwani
Via Business Standard