Nifty likely to witness range of 4340-4670 : Technical Analyst Vijay Bhambwani

The markets opened with a gap down as the overseas cues eroded sentiments at the outset and the bulls simply crumbled under the onslaught. The market breadth was negative as the combined exchange figures were 345 : 3547. The capitalisation of the breadth was also negative as the commensurate figures were Rs 332 Crs : Rs 17550 Crs. The f&o data for the session indicated a truncated turnover as traders shirked from longs at lower levels.

The indices have closed at the lower end of the intraday range as the bears were on the prowl, daggers drawn. That the market internals were negative indicates a higher weight of evidence towards further declines. The 4650 / 4850 range specified for Monday was violated by a wide margin.

The coming session is likely to witness a range of 4340 on declines and 4670 on advances. The traded volumes below the 4580 levels will determine the strength of the selling by the bears as this level is the bearish pivot for the coming session.

The market internals indicate a marginally lower turnover as the participation levels fell insignificantly. The number of trades decreased and the average ticket size was lower, indicating mild buying bias in the markets by weak players. The capitalisation of the market was lower in line with a down tick session.

The outlook for the markets today is that of caution as the overseas triggers ( FOMC meet ) will determine the near term sentiments. Aggressive bulge bracket trades are ruled out for now.

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

Source : MoneyControl