Nifty likely to witness range of 4380-4250

Technical Analyst, Vijay Bhambwani:

As expected yesterday, the markets gyrated to the tune of traders due to the expiry of July f&o series. The headline indices witnessed a minor advance as the bulls rolled over their positions. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1855 : 1977. The capitalisation of the same on a commensurate basis was positive - Rs 11595 Crs : Rs 7774 Crs. The f&o data indicates a higher turnover due to the roll over process.

The indices have closed at the upper end of the intraday range that too on expanded volumes and negative market breadth. These are mild bullish indicators and point towards some advances, however limited due to the profit sales by short term bulls. The 4400 / 4230 range advocated for Thursday held as the Nifty remained within these parameters.

The coming session is likely to witness a range of 4380 on advances and 4250 on declines. As long as the Nifty spot remains above the 4320 threshold, expect optimism.

The market internals indicate a higher turnover as the participation levels rose due to the expiry related rollover. The number of trades increased and the average ticket size was higher, indicating an improved retail buying bias. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets today is that of guarded optimism due to the weekend factor. Ignore bulge bracket fresh commitments for now.

Disclosure: The analyst has no exposure to any scrip/s recommended above.