The markets  opened on an optimistic note and proceeded flatter to deceive the bulls through the day. The benchmark indices shed almost 1 per cent by close, after hitting lower levels.

Traded volumes were subdued compared with the previous session, which is a minor consolation at best as markets can tear down on the force of gravity.

The market breadth was highly negative as the BSE and NSE combined figures were 1070 : 2513 and the capitalisation of the breadth was also negative as the figures on a BSE & NSE combined basis were Rs 3599 cr (Rs 35.99 billion) : Rs 6450 cr (Rs 64.5 billion).

The F&O data for the previous session was indicating bearishness as net long positions rose by 0.5 per cent that too in the low-risk options segment -- indicating that the bulls were on the backfoot.

The indices have closed at the lower end of the intraday range  on a very weak market breadth amid lower volumes. Low volumes are at best a fond hope for the bulls as markets can slide for extended periods of time on poor volumes, assisted by gravitational forces.

The expectation of a weak undertone on a weekend session was on the ball, exposing the weak underbelly of market sentiments at this juncture. 

The outlook for the markets on Monday is that of continued caution as bulls are appearing to lose their initiative to bears and the probability of a surprise recovery runs thin.

The author is a Mumbai-based investment consultant
 
Mandatory disclosure: The analyst has no exposure to the scrips mentioned above.