The markets opened with a gap and ended with significant losses as the overseas cues took their toll on an already nervous market. The benchmark indices lost nearly 4 per cent at close. Traded volumes were higher compared with the previous session, which is a bearish indicator.

The market breadth was negative as the BSE & NSE combined advance decline ratio was 570 : 3106. The capitalisation of the breadth was also negative.

The F&O data for the previous session indicate a 2 per cent increase in net long positions with a rise in the PCR.

The indices have closed at the lower end of the intraday range as the selling persisted till the fag end of the session. That the traded volumes were higher and the market breadth was outright negative adds to the weak outlook.

The intraday range specified for the session on Wednesday was violated convincingly as the bottom was violated by a wide margin, indicating a falling daily range. The coming session is likely to witness a range of 4225 on advances and 4444 on declines.

Traded volumes and market breadth needs close watching in the coming days as the market volatility has spiked significantly.

The outlook for the markets on Thursday is that of abundant caution as the overseas cues and margin calls will determine the short term trends. Avoid big ticket trades and avoid the temptation to bottom fish in the current scenario.