Technical Analyst, Vijay Bhambwani: The markets opened on a positive note but ended with mild losses as the expiry saw unwinding of longs on upthrusts. The NSE benchmark index lost under 1 % at close. The traded volumes were higher as compared to the previous session, which is a routine indicator on an expiry day. The market breadth was negative as the BSE & NSE combined advance decline ratio was 1651 : 1947. The capitalisation of the breadth was also negative as the commensurate figures were Rs 5196 Crs : Rs 10145 Crs.

The indices have closed at the lower end of the intraday range as the short covering eased significantly and bulls failed to buy aggressively. As advocated yesterday, the true price discovery mechanism will kick in after the January expiry. The intraday range advocated between the 2900 / 2785 levels held as the Nifty bounced from the 2795 levels.

The coming session is likely to witness a range of 2875 on advances and 2740 on declines. The bullish pivot will be the 2850 above which the outlook will remain positive and the 2830 below which profit sales cum fresh shorts may emerge.

The market internals indicate a rally in the turnover due to the expiry. The number of trades were higher and the average ticket size per trade was higher, indicating a stronger selling on advances. The capitalisation of the market was lower in line with a downtick session

The outlook for the markets today is that of cautious optimism as the weekend considerations will weigh on the buying momentum. Continue to ignore bulge bracket purchases for now.

source: moneycontrol

Tags: calls, daytrading, free calls, intraday, tips

Similar Posts:

• Nifty likely to witness range of 4400-4170: Bhambwani
• Nifty likely to witness range of 3045-2860: Bhambwani
• Nifty likely to witness range of 2875-2700: Bhambwani
• Nifty likely to witness range of 2850-2680: Bhambwani
• Nifty likely to witness range of 2840-2735: Bhambwani