Nifty likely to witness range of 4530-4335

Technical Analyst, Vijay Bhambwani:

The markets opened on an optimistic note and turned on a dime in the first half of the session itself. The traded volumes were lower and that is a routine phenomena on a downtick session. The market breadth was negative as the BSE & NSE combined advance decline ratio stood at 1721 : 2220. The capitalisation of the breadth was positive as the commensurate figures were Rs 12254 Crs : Rs 11807 Crs. The f&o data indicated a lower turnover and a rally in the PCR as the bears continued to press fresh shorts.

The indices have closed at the lower end of the intraday band as the bears re-emerged at higher levels, routine after a big upthrust session. The market internals turned negative on a downtick session and a decline in volumes makes the fall a routine one for now. As advocated yesterday, the index was at a critical resistance from a bearish channel formation. The intraday range for Thursday advocated at the 4570 / 4325 held as the Nifty remained within these parameters.

The coming session is likely to witness a range of 4530 on advances and 4335 on declines. The bullish pivot for the session will be the 4480 above which the spot Nifty must remain to be firm. On the flip side, the bearish pivot will be the 4445 level below which the bears will gain strength.

The market internals indicate a lower turnover as the participation levels fell due to the decline. The number of trades decreased and the average ticket size was lower, indicating a weak selling bias. The capitalisation of the market was lower in line with a downtick session.

The outlook for the markets today is that of abundant caution as the weekend session may restrict the exuberance factor.

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