Nifty likely to witness range of 4350-4150: Bhambwani
Published on Friday, June 19th, 2009 at 9:46 AMAuthor: admin (5507 Articles)
Technical Analyst, Vijay Bhambwani:
The Nifty continued to make a lower tops and bottoms formation for the fourth day in a row. The traded volumes were marginally lower as compared to the previous session, which is a routine indicator on a downtick session. The market breadth was negative as the BSE & NSE combined advance decline ratio was 682 : 3199. The capitalisation of the breadth was also negative as the BSE & NSE combined figures were Rs 4786 Crs : Rs 23982 Crs. That indicates selling. The decline was led by the midcap sector as retail players surrendered positions.
The indices have closed in the lower end of the intraday range, with negative market internals and lower volumes. These are indications of weakness. The intraday range specified for Thursday between the 4470 / 4225 has held as the Nifty tested the 4222 mark before inching higher at close.
The coming session is likely to witness a range of 4350 on advances. Support is likely at 4150 on declines. The bullish pivot for the session will be at the 4315 and the bearish pivot at the 4290 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 higher and the average ticket size per trade was lower, 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 weekend factor coupled with the impeding expiry may hinder large scale buying momentum. Upticks are likely to be pullbacks alone.
Disclosure: The analyst has no exposure to the scrips recommended above.
Source : MoneyControl
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