Nifty likely to witness range of 4335-4150: Bhambwani

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Technical Analyst, Vijay Bhambwani:

As was expected, the bears remained on the back foot as the bulls supported the markets with higher volume participation. The charge was led by the midcap and banking stocks, with the technology pack continuing to bring up the rear. The traded volumes were higher as compared to the previous session, which is a positive indicator for an uptick session as retail participation improved further. The market breadth was positive as the BSE & NSE combined advance decline ratio was 3155 : 690. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 23628 Crs : Rs 806 Crs. The NSE gained Rs 157639 Crs in market capitalisation.

The indices have closed in the upper end of the intraday range, with positive market internals and higher volumes. These are indications of fresh buying coupled with bear covering. The intraday range specified for Wednesday between the 4225 / 4025 was overcome marginally on the upsides as the Nifty closed above the specified resistance.

The coming session is likely to witness a range of 4335 on advances. Support is likely at 4150 on declines. The bullish pivot for the session will be at the 4200 and the bearish pivot at the 4170 levels. Traders need to watch the activity beyond these thresholds respectively for intraday guidance.

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

The outlook for the markets today is that of continued optimism as the bulls hold the initiative and overseas cues are positive. Keep monitoring the traded volumes for now.

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