The markets opened on a cautious note and proceeded to trade lower through the day. The benchmark indices lost ground marginally as the bulls lacked the conviction to offer follow up support at lower levels. Traded volumes were higher than the previous session which is a negative trigger on a down tick day.

The market breadth was marginally positive as the BSE and NSE combined figures were 1867 : 1803 and the capitalisation of the breadth was negative as the figures on a BSE & NSE combined basis were Rs 5699 cr : Rs 7451 cr.

The indices have closed at the lower end of the intraday range as the lack of follow up buying saw a drift in the markets. The 4183 / 4085 range specified was not tested in either direction as the intraday range was compressed after the recent wide swings.

The daily chart shows an inside day formation as the day’s high / low was within the previous sessions range. The routine profit sales anticipated yesterday did visit the markets.

The coming session is likely to witness an intraday range of 4150 on advances and 4090 on declines. The markets will display a clear trend only after the prices trend in a secular direction for a few days in a row.

The outlook for the markets on Wednesday is that of mild choppiness as the players are likely to seek guidance from external cues. Big ticket trades must still be avoided.