Nifty likely to witness range of 4130-4035: Bhambwani

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Technical Analyst, Vijay Bhambwani:

The session recorded a lack luster pattern as the buying support remained elusive for the third day in a row. This was along expected lines as the bulls were under pressure.  The traded volumes were lower as compared to the previous session, which is a routine indicator for a weak session. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1592 : 2161. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 13231 Crs : Rs 7545 Crs. That indicates selling on small / midcaps and buying on index weighted stocks.
 
The indices have closed in the upper end of the intraday range, with negative market internals and lower volumes. These are indications of continued weakness in the undertone. The intraday range specified for Thursday between the 4175 / 3975 has held as the Nifty traded within these parameters.

The coming session is likely to witness a range of 4130 on advances above which the 4160 maybe likely. Support is likely at 4035 on declines below which the 4000 level maybe likely. The bullish pivot for the session will be at the 4090 and the bearish pivot at the 4070 levels. Traders need to watch the activity beyond these thresholds respectively for intraday guidance.

The market internals indicate a lower turnover due to the lack of buying conviction. The number of trades were lower and the average ticket size per trade was lower, indicating a weak buying bias. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets today is that of caution as the weekend factor and overseas cues may curb buying enthusiasm.

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