Nifty likely to witness range of 6160-6100: Bhambwani
The coming session is likely to witness a range of 6160 on advances above which the 6175 maybe seen. Support is likely at the 6100 below which the 6075 maybe tested. The bullish pivot for the session is likely at the 6135 levels and the bearish pivot at the 6115 levels.
January 03, 2011 / 08:18 IST
Technical Analyst, Vijay Bhambwani:
The markets opened on a firm footing and ended the day with continued gains as the bulls managed to keep the Nifty above the 6090 bullish pivot throughout the session. The benchmark indices ended with over 0.5 % gains at close. The traded volumes were lower compared to the previous session, which is a routine indicator for a weekend / year end session. The market breadth was positive as the BSE & NSE combined advance decline ratio was 2534 : 1416. The capitalisation of the breadth was positive as the BSE & NSE combined figures were Rs 10549 Crs : Rs 4328 Crs. The NSE gained Rs 54401 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 lower levels. The intraday range advocated for the Nifty between the 6140 / 6070 has held loosely as the Nifty trended more or less within these levels - thereby validating our intraday wave count employed. The coming session is likely to witness a range of 6160 on advances above which the 6175 maybe seen. Support is likely at the 6100 below which the 6075 maybe tested. The bullish pivot for the session is likely at the 6135 levels and the bearish pivot at the 6115 levels. Traders must watch these levels for signs of trend determination in the coming session.The daily candle chart of the Nifty shows a smaller bullish candle with no lower wick, indicating support at lower levels. Note the candle body size is compressing for the last 3 days in a row. Technical analysis buffs may note the "W" shaped double bottom formation which now been put in place with the Nifty trading above the 6065 levels. For the bulls to prevail over the bears, it is important that the Nifty remain above the 6135 levels consistently on Monday. The net bias - cautious optimism on Monday as long as the Nifty spot trades above the 6135 bullish pivot.The market internals indicate a lower turnover due to the weekend factor. The number of trades were lower and the average ticket size per trade was lower, indicating a truncated retail buying. The capitalisation of the market was higher in line with an uptick session. The f&o cues are not available.The outlook for the markets today is that of guarded optimism as the bulls must hold the Nifty above the 6135 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!
