By Vijay L Bhambwani, CEO of BSPLindia.com
The markets opened on a cautious note and ended the session with widespread losses as the bulls failed to test the Nifty 5525 bullish pivot throughout the session. The benchmark indices ended with approx 0.6% losses at close. The traded volumes were higher as compared to the previous session, which is a negative indicator for a downtick session. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1699 : 2564. The capitalisation of the breadth was negative as the commensurate figures were Rs 3935 crore : Rs 7644 crore. The NSE shed Rs 35148 crore in market capitalisation.The indices have closed in the lower end of the intraday range as the bulls were unable to offer support at higher levels. The intraday range specified for the Nifty between the 5550 / 5475 was violated as the Nifty tested the 5457 levels, thereby exceeding our intraday levels on the downsides. The coming session is likely to witness a resistance at the 5525 levels on advances. Support is likely at the 5440 levels below which the 5415 maybe tested. The bullish pivot for the session is likely at the 5500 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 5475 levels below which declines may occur. Traders must watch these levels for signs of trend determination in the coming session.The daily candle chart of the Nifty shows a large bearish candle with a lower shadow, indicating a mild support on declines during the session. Staying below the 5500 bearish pivot set the tone and tenor as downward for the session, from the first hour of trade. Should the Nifty spot stay below the 5450 levels consistently in the coming week, any possibility of an inverse head and shoulder formation will dissipate. The downward sloping trendline remains the nemesis of the bulls and as long as rallies occur below this trendline, they are corrective pullbacks alone. The Nifty (spot) must stay above the 5500 levels sustainably with volumes and open interest expansion to rally intraday on Monday. On the flip side, sustaining below the 5475 levels may trigger a fresh bout of declines.The market internals indicate a higher turnover due to the selling pressure. The number of trades were higher and the average ticket size per trade was lower, which indicates a selling bias. The capitalisation of the market was lower in line with a bearish session. The put call ratios indicate the bears squaring up their shorts on declines.| NSE cash figures | Jun 09, 2011 | Jun 10, 2011 | Change |
| Turnover Rs Crs | 8,049.42 | 8,959.59 | 910.17 |
| Number of trades | 43,23,822 | 48,96,429 | 5,72,607 |
| Capitalisation Rs Crs | 65,46,686 | 65,11,538 | (-) 35,148 |
| Average value per trade - Rs | 18,616 | 18,298 | (-) 318 |
| F&o Cues | Jun 09, 2011 | Jun 10, 2011 | Change |
| Nifty PCR | 1.31 | 1.23 | (-) 0.08 |
| Bank Nifty PCR | 1.18 | 1.15 | (-) 0.03 |
| Stock PCR | 0.30 | 0.29 | (-) 0.01 |
| Marketwide PCR | 0.51 | 0.49 | (-) 0.02 |
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