Nifty likely to witness 5260: Bhambwani

ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

By Vijay L Bhambwani, CEO of BSPLindia.com

The markets opened on a firm note and ended the session with strong gains as the bulls managed to hold the Nifty above the 5135 bullish pivot. The benchmark indices gained over 1.25 % at close. The traded volumes were higher as compared to the previous session, which is a positive indicator for an uptick session. The market breadth was positive as the BSE & NSE combined advance decline ratio was 2742 : 1435. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 10494 crore : Rs 4413 crore. The Nifty gained Rs 49937 crore in market capitalisation.

The indices have closed in the upper end of the intraday range as the bulls bought at lower levels. The intraday range specified for the Nifty between the 5185 / 5100 was overcome on the upside, thereby exceeding our wave count. The coming session is likely to witness a range of 5260 on advances. Support is likely at the 5145 levels below which the 5075 maybe seen. The bullish pivot for the session is likely at the 5180 levels and the bearish pivot at the 5160 levels. Traders must watch these levels for signs of trend determination in the coming session.

The market internals indicate a higher turnover due to the bullishness. The number of trades were higher and the average ticket size per trade was lower, indicating a retail buying bias. The capitalisation of the market was higher in line with an uptick session. The f&o cues show the bears ramping Nifty shorts on advances.

NSE cash figures	Mar 15, 2010	Mar 16, 2010	Change
Turnover Rs Crs	10,832.64	11,375.56	542.92
Number of trades	48,87,502	53,73,832	4,86,330
Capitalisation Rs Crs	58,89,299	59,39,236	49,937
Average value per trade - Rs	22,164	21,168	(-) 996
F&o Cues	Mar 15, 2010	Mar 16, 2010	Change
Nifty PCR	1.49	1.54	0.05
Stock PCR	0.54	0.55	0.01
Marketwide PCR	0.33	0.34	0.01

 

 

 

 

 

 

 

The outlook for the markets today is that of guarded optimism as the bulls must hold the Nifty above the 5180 levels sustain ably to extend the upmove.

Mandatory disclosure - the analyst has no exposure to the scrips recommended above.