Though the benchmark equity indices managed to close higher on Thursday, apprehensions of a further fall continue to simmer on the street as global markets are yet to show any clear direction.
While the benchmark Sensex of the Bombay Stock Exchange ended the day higher by 49.33 points, or 0.33 per cent, the 50-share Nifty of the National Stock Exchange closed at 4356.35 points, up 0.24 per cent from the previous day's close.
Both the indices eased off from the day's highs towards the end of the session, indicating a lack of buying confidence at lower levels. Market experts expect weakness on Friday.
"Upsides are witnessing selling. If at all some fresh buying comes in, the positions are closed on the day itself. Investors are living day to day. The markets may be a little nervous tomorrow because of the weekend factor," said Vijay Bhambwani of BSPLindia.com. He expects resistance at 4,425 and support at 4,335 on the Nifty.
The Sensex hit an intra-day high of 15,134.53 points and shed most of its gains before the end of the session. However, the market breadth remained positive with 21 of the 30 Sensex stocks gaining. All BSE sectoral indices except Auto, IT and TecK, closed higher.
The Nifty August derivatives contracts closed on Thursday at 4,317 points, 39 points below the underlying index value. This indicates that investors have gone short (sell) on the Nifty, expecting lower levels on the index.
Technical analysts think that while the undertone in the market is bearish, the indices are pretty close to their support levels, from where a trend reversal could happen, subject to conditions in world markets.
"The undertone seems to be bearish but the markets are near their crucial support levels. The Nifty has strong support in the 4,310-4,280 range and the Sensex at 14,700. However, if these levels are broken and the markets stay below these levels for a while, the Sensex could reach 14,000-levels and the Nifty could test the 4,100-level," said Vinit Birla, technical analyst with Pranav Securities.