New Delhi, Nov. 23 -- Dear reader,

Last week, I wrote that the Nifty 50 was close to a breakout, but buying was half-hearted. Read that column here. The nervousness in buying conviction was apparent again as sentiments turned nervous on Friday. Veteran market trader Richard Donchian, who was an active trader in the US in the 1960s and 1970s, advocated that Friday's closing prices often indicated how the markets would trade in the coming week. Unless follow-up buying emerges this week, this overhang of overhead supply may continue.

Last week, it was suggested that optimism over a possible US-India trade deal could buoy sentiments. That hypothesis was validated in the first half of the week. In the second half of the week, we saw many pro...