Budget likely to weigh on the sentiments: Bhambwani
Published on Wednesday, July 1st, 2009 at 9:52 AMAuthor: admin (5507 Articles)
Technical Analyst, Vijay Bhambwani:
The markets extended the weakness on fresh sales as the bears sensed a lack of conviction within the bull camp. The traded volumes were higher as compared to the previous session, which is a negative indicator for a downtick session. The market breadth was negative as the BSE & NSE combined advance decline ratio was 967 : 2869. The capitalisation of the breadth was also negative as the BSE & NSE combined figures were Rs 2628 Crs : Rs 24230 Crs. The decline was led by the banking and midcap stocks.
The indices have closed in the lower end of the intraday range, with negative market internals and higher volumes. These are indications of selling. The intraday range specified for Tuesday between the 4450 / 4325 was violated as the Nifty traded below the specified support.
The coming session is likely to witness a range of 4400 on advances. Support is likely at 4175 on declines. The bullish pivot for the session will be at the 4370 and the bearish pivot at the 4325 levels. Traders need to watch the activity beyond these thresholds respectively.
The market internals indicate a higher turnover due to the weakness. The number of trades were higher and the average ticket size per trade was higher, indicating a selling 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 overseas cues and the budget are likely to weigh on the sentiments.
Disclosure: The analyst has no exposure to the scrips recommended above.
Source : MoneyControl
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