Nifty likely to witness range of 4450-4325: Bhambwani

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Technical Analyst, Vijay Bhambwani:

The markets began the week on a cautious note as the bulls could not sustain values at higher levels. The traded volumes were marginally higher as compared to the previous session, which was along expected lines for the first day of the week. The market breadth was positive as the BSE & NSE combined advance decline ratio was 2523 : 1360. The capitalisation of the breadth was also positive as the BSE & NSE combined figures were Rs 19084 Crs : Rs 6419 Crs. The decline was caused by the technology stocks.

The indices have closed in the lower end of the intraday range, with positive market internals and higher volumes. These are indications of cautious buying. The intraday range specified for Monday between the 4475 / 4275 held as the Nifty traded within these parameters.

The coming session is likely to witness a range of 4450 on advances above which the 4500 maybe likely. Support is likely at 4325 on declines. The bullish pivot for the session will be at the 4400 and the bearish pivot at the 4380 levels. Traders need to watch the activity beyond these thresholds respectively.

The market internals indicate a higher turnover due to the volatility. The number of trades were higher 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 cautious optimism as the overseas cues and follow up support are likely to provide cushion on the downsides.

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