Nifty likely to witness range of 3250-3450: Bhambwani

The coming session is likely to witness a range of 3400 on advances above which the 3450 maybe likely, and 3250 on declines.

Technical Analyst, Vijay L Bhambwani (CEO - BSPLindia.com)

The markets opened on a positive note and ended off the intraday highs due to profit sales at higher levels. The benchmark indices ended with little changes at close due to the long weekend considerations. The traded volumes were marginally lower as compared to the previous session, which is a routine indicator. The market breadth was positive as the BSE and NSE combined advance decline ratio was 2608 : 1200. The capitalisation of the breadth was also positive as the BSE & NSE combined figures were Rs 17897 crore : Rs 5301 crore.

The indices have closed in the lower half of the intraday range, the positive market internals and the lower volumes indicating mild retail buying. The intraday range specified for Thursday at the levels 3475 / 3200 has held as the Nifty traded within these parameters. The coming session is likely to witness a range of 3400 on advances above which the 3450 maybe likely, and 3250 on declines. The bullish pivot will be at the 3365 levels above which the outlook will be firm and the bearish pivot will be at the 3340 level below which the bears may push the Nifty lower.

The market internals indicate a lower turnover due to the volatility and the weekend factor. The numbers of trades were higher and the average ticket size per trade was lower, indicating a milder buying bias. The capitalisation of the market was higher in line with an uptick session.

The outlook for the markets on Monday is that of guarded optimism as the higher levels are attracting profit sales and as the benchmarks head towards their 200 day SMA's, watch the overseas cues carefully.

Mandatory disclosure - the analyst has no exposure to any scrip/s recommended above.