Nifty likely to witness range of 4475-4275: Bhambwani
Published on Monday, June 29th, 2009 at 9:59 AMAuthor: admin (5507 Articles)
Technical Analyst, Vijay Bhambwani:
The markets ended the week on a strong note as the short squeeze continued at lower levels. The traded volumes were lower as compared to the previous session, which was along expected lines as advocated by us due to the weekend factor. It is a negative indicator on an uptick session. The market breadth was positive as the BSE & NSE combined advance decline ratio was 2566 : 1291. The capitalisation of the breadth was also positive as the BSE & NSE combined figures were Rs 21282 Crs : Rs 2804 Crs. The advance was led by the banking and technology stocks.
The indices have closed in the upper end of the intraday range, with positive market internals and lower volumes. These are indications of cautious retail buying. The intraday range specified for Friday between the 4320 / 4180 was overcome on the upside as the Nifty closed above the resistance specified.
The coming session is likely to witness a range of 4475 on advances. Support is likely at 4275 on declines. The bullish pivot for the session will be at the 4330 and the bearish pivot at the 4300 levels. Traders need to watch the activity beyond these thresholds respectively.
The market internals indicate a lower turnover due to the weekend factor. The number of trades were lower and the average ticket size per trade was lower, indicating a weak buying bias. The capitalisation of the market was higher in line with an uptick session.
The outlook for the markets today is that of cautious optimism as the bullishness may extend from Friday especially if the overseas cues are positive / neutral.
Disclosure: The analyst has no exposure to the scrips recommended above.
Source : MoneyControl
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