Nifty likely to witness range of 4440-4680

The markets opened on a steady note and proceeded to see saw through the session before finally closing way off the intraday perches. The market breadth was negative as the combined exchange figures were 1088 : 2781. The capitalisation of the breadth was also negative as the commensurate figures were Rs 9354 Crs : Rs 12433 Crs. The f&o data for the session indicated a higher turnover as traders participated in the day's volatility. The Nifty PCR eased to 0.83 which indicates some bear covering.

The indices have closed at the lower end of the intraday range as the bulls were on the back foot on the eve of the FOMC meet. That the market internals were negative indicated a bias towards profit sales on advances. The 4340 / 4670 range specified for Tuesday held as both parameters were not tested.

The coming session is likely to witness a range of 4440 on declines and 4680 on advances. The traded volumes above the 4570 levels will determine the strength of the buying by the bulls as this level is the bullish pivot for the coming session.

The market internals indicate a higher turnover as the participation levels rose. The number of trades increased and the average ticket size was higher, indicating buying bias in the markets by weak players. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets today is that of cautious optimism as the overseas triggers ( FOMC meet ) will impact domestic sentiments. Should the cues be strongly positive, attempt small sized buys.

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

Source : MoneyControl