Nifty likely to witness range of 4560-4300: Bhambwani
Published on Tuesday, June 9th, 2009 at 8:57 AMAuthor: admin (5507 Articles)
Technical Analyst, Vijay Bhambwani:
After opening on a nervous note, the markets ended with major losses as the bulls surrendered their initiative to the bears. The traded volumes were lower as compared to the previous session, which is an indicator of the retail withdrawal on declines. The market breadth was negative as the BSE & NSE combined advance decline ratio was 692 : 3413. The capitalisation of the breadth was also negative as the BSE & NSE combined figures were Rs 1623 Crs : Rs 27405 Crs.
The indices have closed in the lower end of the intraday range that too with negative market internals and lower volumes. The lower volumes are a minor mercy as volumes tend to be lower on declines, falls being aided by gravity. The day was saved by the technology stocks even as other sectors came under the hammer. The intraday range specified for Monday between the 4630 / 4515 was violated as the Nifty breached the support by a wide margin.
The coming session is likely to witness a range of 4560 on advances. Support is likely at 4300 on declines, below which the 4275 maybe seen. The bullish pivot for the session will be at the 4530 and the bearish pivot at the 4480 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 lower, indicating a weaker buying bias. The capitalisation of the market was lower in line with a downtick session.
The outlook for the markets today is that of guarded optimism as the bulls need to offer large scale support to push markets higher.
Disclosure: The analyst has no exposure to the scrips recommended above.
Source : MoneyControl
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