Avoid aggressive big ticket fresh buys: Bhambwani

Technical Analyst, Vijay Bhambwani:

The markets opened on a bullish note but ended off their intraday perches as the 6005 resistance specified for Thursday proved to be a formidable one in the near term. The indices ended in the green but the activity was clearly indicating a lack of follow up buying conviction at higher levels. The market breadth was positive as the combined exchange figures were 2408 : 1553. The capitalisation of the breadth was also positive as the commensurate figures were Rs 17257 Crs : Rs 14360 Crs. The f&o data for the session indicated a 0.61 % increase in net long positions amidst a marginal fall in the Nifty PCR.

The indices have closed off their intraday highs and in the lower half of the intraday range. The traded volumes being higher on an insipid session indicates a possibility of distribution at higher levels in the absolute short term. The closing on the daily charts is still at it's highest which could be a consolation for the bulls. The market breadth indicates a continued buying bias from the retail segment till the fag end of the session. The range for Friday will be 6025 on advances and 5885 on declines. The session could go to the bulls provided the Nifty spot remains above the 5985 - 5990 band on higher volumes.

The outlook for today is that of guarded optimism as the weekend factor and overseas cues will impact the immediate sentiments. Ignore aggressive big ticket fresh buys for now.

Disclosure: The analyst has no exposure to any scrip/s recommended above.

Source : MoneyControl