Support may be seen at 4770: Bhambwani

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By Vijay L Bhambwani, CEO of BSPLindia.com

The markets opened on an pessimistic note and ended the session with sizable losses as the bulls were unable to hold the Nifty above the 4905 pivot. The banking and technology stocks were the under performers in the markets. The traded volumes were lower which is a routine indicator for a bearish session. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1077 : 3080. The capitalisation of the breadth was negative as the commensurate figures were Rs 4139 crore : Rs 12620 crore. The NSE shed Rs 96237 Crs in market capitalisation.

The indices have closed in the lower end of the intraday range as the bulls failed to lend support during the session. The intraday range specified for the session between 5000 / 4860 was violated as the Nifty retraced from the 4832 levels, thereby exceeding our spiral wave count. The coming session is likely to witness a range of 4900 on advances as the weekend factor will curtail buying enthusiasm. Support may be seen at the 4770 levels. The bullish pivot for the session is likely at the 4895 levels and the bearish pivot at the 4870 levels. Traders need to watch these parameters for signs of breakout / breakdown from the previous sessions range.

The market internals indicate a lower turnover due to the weak buying. The number of trades was lower and the average ticket size per trade was lower, indicating a weak buying bias. The capitalisation of the market was lower in line with a downtick session. The F&O cues show the bears squaring up shorts on declines.

The outlook for the markets today is that of caution as the bulls need to hold the Nifty above the 4895 mark consistently. Being a weekend session and the overseas cues weighing on the sentiments, the markets may seek lower floors.

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

NSE cash figures	Feb 03, 2010	Feb 04, 2010	Change
Turnover Rs Crs	13,715.09	13,075.97	(-) 639.12
Number of trades	62,10,686	60,32,567	(-) 1,78,119
Capitalisation Rs Crs	58,65,976	57,69,739	(-) 96,237
Average value per trade - Rs	22,083	21,676	(-) 407
F&o Cues	Feb 03, 2010	Feb 04, 2010	Change
Nifty PCR	1.13	1.08	(-) 0.05
Stock PCR	0.27	0.25	(-) 0.02
Marketwide PCR	0.47	0.43	(-) 0.04