Wednesday, February 24, 2010

Nifty likely to witness range of 4900-4835

The markets opened on an optimistic note and ended the session with mild gains as the bulls were unable to hold the Nifty above the 4890 pivot level. The benchmark indices gained under 0.25 % at close. The traded volumes were higher as compared to the previous session, which is a positive indicator for a bullish session. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1224 : 2897. The capitalisation of the breadth was negative as the BSE & NSE combined figures were Rs 4760 crs : Rs 9055 crs. The Nifty shed Rs 10152 Crs in market capitalisation.

The indices have closed in the upper end of the intraday range as the bears covered shorts ahead of expiry at lower levels. The intraday range advocated for the Nifty between the 4900 / 4815 has held as the Nifty retraced from the 4884 levels - thereby validating our spiral wave count.

The coming session is likely to witness 4900 on advances above which the 4925 maybe tested - a lower probability event. Support is likely at the 4835 levels below which the 4800 maybe seen. The bullish pivot for the session is likely at the 4865 levels and the bearish session at the 4850 levels. Traders must watch these levels for signs of trend determination in the coming session.

The market internals indicate a higher turnover due to the bear covering at lower levels. The number of trades were higher and the average ticket size per trade was higher, indicating a covering bias on declines. The capitalisation of the market was lower in divergence with an uptick session. The f&o cues show the bears ramping up shorts on advances and squaring up on declines.

Source : http://www.moneycontrol.com/news/vijay-bhambwani/nifty-likely-to-witness-range4900-4835-bhambwani_443360.html

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