Nifty likely to witness range of 4985-4900: Bhambwani

Nifty likely to witness range of 4985-4900: Bhambwani

Technical Analyst, Vijay Bhambwani: The markets opened on a weak note and ended the session with losses as the bulls failed to hold the Nifty above the 5020 levels consistently. The banking stocks were the out performers in the markets. The traded volumes were lower which is a routine indicator for a bearish session. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1770 : 2331. The capitalisation of the breadth was negative too as the commensurate figures were Rs 3382 Crs : Rs 11393 Crs. The NSE shed Rs 26093 Crs in market capitalisation.

The indices have closed in the lower end of the intraday range as the bulls went missing till the fag end of the session. The intraday range specified for the session between 5045 / 4940 has held as the Nifty bounced from the 4943 levels to validate our wavecount.


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The coming session is likely to witness a range of 4985 on advances above which the 5030 maybe tested. Support maybe seen at the 4900 levels. The bullish pivot for the session is likely at the 4980 levels and the bearish pivot at the 4965 levels. Traders need to watch the these parameters for signs of breakout / breakdown from the previous sessions range.

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 lower buying bias. The capitalisation of the market was lower in line with a downtick session. The f&o cues show the bears squaring up shorts on declines.

The outlook for the markets today is that of cautious optimism as the bulls need to hold the Nifty above the 4980 mark consistently.

The author is a Mumbai based investment consultant and invites feedback at vijay@BSPLindia.com or (022) 23438482.

Disclosure: The analyst has no exposure to the scrips recommended above.