Nifty likely to witness range of 5750-5650: Bhambwani
The coming session is likely to witness a range of 5750 on advances. Support is likely at the 5650. The bullish pivot for the session is likely at the 5700 levels and the bearish pivot at the 5690 levels.
January 24, 2011 / 08:16 IST
Technical Analyst, Vijay Bhambwani:
The markets opened on a cautious note and ended the day with mild losses as the bulls failed to keep the Nifty above the 5695 bullish pivot throughout the session. This was along expected lines as we had advocated a lack of buying conviction due to weekend factors. The benchmark indices ended with approx 0.2 % losses at close. The traded volumes were lower compared to the previous session, which is a routine indicator for a bearish weekend session. The market breadth was marginally positive as the BSE & NSE combined advance decline ratio was 2229 : 2000. The capitalisation of the breadth was negative as the BSE & NSE combined figures were Rs 6106 Crs : Rs 8491 Crs. The NSE shed Rs 6128 Crs in market capitalisation. The indices have closed in the median end of the intraday range as the bulls were able to support the markets at lower levels, aided by bear covering on declines due to the impeding expiry of the Jan f&o series. The intraday range advocated for the Nifty between the 5770 / 5650 (5970 was a typographical error - regret the inconvenience) held as the Nifty kept within these levels intraday - thereby validating our intraday wave count employed. The coming session is likely to witness a range of 5750 on advances. Support is likely at the 5650. The bullish pivot for the session is likely at the 5700 levels and the bearish pivot at the 5690 levels. Traders must watch these levels for signs of trend determination in the coming session.The daily candle chart of the Nifty shows a small doji candle, indicating an inside day formation as the weekend saw a truncated buying pattern. Follow up buying will be a critical factor for the bulls to keep the Nifty bullish. For the bulls to prevail over the bears, it is important that the Nifty remain above the 5690 levels consistently on Monday.The market internals indicate a lower turnover due to the weekend. The number of trades were lower and the average ticket size per trade was lower, indicating a lack of buying support. The capitalisation of the market was lower in line with a bearish session. The put call ratios indicate the bears squaring up their Nifty short positions ahead of the expiry.The outlook for the markets today is that of cautious optimism as the bulls must hold the Nifty above the 5690 levels sustain ably to manage an upmove in the coming session.The analyst is a Mumbai based author of India's first commodity trading guide book - "A Traders Guide to Indian Commodity Markets" and invites feedback at vijay@BSPLindia.com.Disclosure: The analyst has no exposure to the scrips recommended above. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
