The markets opened on an optimistic note but ended negative as the bulls were unable to hold their own against the selling pressure.
The market breadth was negative as the combined exchange figures were 1388: 2542 and the capitalisation of the breadth was also negative as the commensurate figures were Rs 7756 crore:Rs 18066 crore.
The f&o data for the session indicates a routine unwinding of long positions on expiry day.
The indices have closed at the lower end of the intraday range and that too on higher traded volumes and negative market internals.
The higher volumes can partly be attributed to the expiry session. The 5060/5275 range specified for Thursday held, thereby validating our wave count.
The coming session is likely to witness an intraday range of 5025/5245 on declines and advances respectively. Watch the traded volumes keenly if the Nifty manages to trade below the 5140 pivot level consistently as the bears may attempt fresh aggression.
The weekend factor coupled with overseas cues may impact the near term outlook on Friday and hence one should proceed with caution. The price discovery process is likely to start in earnest in the new f&o series.