Nifty likely to witness range of 4325-4150: Bhambwani
Published on Tuesday, June 23rd, 2009 at 9:59 AMAuthor: admin (5507 Articles)
Technical Analyst, Vijay Bhambwani:
The markets continued on their downward trajectory as per our expectations as the 4450 mark remained elusive. The traded volumes were lower as compared to the previous session, which is a negative indicator on the first session of the week. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1588 : 2237. The capitalisation of the breadth was also negative as the BSE & NSE combined figures were Rs 7398 Crs : Rs 14676 Crs. That indicates selling. The decline was fuelled by the oil and gas stocks.
The indices have closed in the lower end of the intraday range, with negative market internals and lower volumes. The lower volumes are a minor mercy as markets can decline extensively on poor volumes, aided by gravity. The intraday range specified for Monday between the 4400 / 4250 was violated as the Nifty slipped marginally below the support specified.
The coming session is likely to witness a range of 4325 on advances. Support is likely at 4150 on declines. The bullish pivot for the session will be at the 4300 and the bearish pivot at the 4270 levels. Traders need to watch the activity beyond these thresholds respectively.
The market internals indicate a lower turnover due to the weakness. The number of trades were lower and the average ticket size per trade was higher, indicating a weak buying bias. The capitalisation of the market was lower in line with a downtick session.
The outlook for the markets today is that of caution as the bulls are on the ropes due to margin calls and the impeding expiry of the June F&O series. The overseas cues being negative, the sentiments will be weak.
Disclosure: The analyst has no exposure to the scrips recommended above.
Source : MoneyControl
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