Nifty has support at 5220: Bhambwani
The coming session is likely to witness a resistance at 5400 on advances. Support is likely at the 5220 levels. The wide range is due to the high base effect of Friday’s session.
February 14, 2011 / 08:54 IST
Technical Analyst, Vijay Bhambwani:
The markets opened on a cautious note and ended the session with widespread gains as the bulls managed to pull the Nifty above the bullish pivot. While we advocated a pullback rally for the last two sessions, the magnitude of the upmove was a pleasant surprise. The benchmark indices ended with approx 1.5 % gains at close. The traded volumes were lower compared to the previous session, which is a negative indicator for a bullish session, however, weekend factors were at play that curbed big ticket buying. The market breadth was positive as the BSE & NSE combined advance decline ratio was 3275 : 1004. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 11185 Crs : Rs 6017 Crs. The NSE gained Rs 105456 Crs in market capitalisation.The indices have closed in the upper end of the intraday range as the bulls were able to support the markets at higher levels. The intraday range advocated for the Nifty between the 5275 / 5170 was overcome on the upside as the Nifty tested the 5319 levels - thereby exceeding our intraday wave count employed on the upside. The extension past the 5275 did occur and was a welcome sign as anticipated, it negated the weekend selloff towards the end of the session. The coming session is likely to witness a resistance at 5400 on advances. Support is likely at the 5220 levels. The wide range is due to the high base effect of Friday
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