Yesterday I had advocated a minor red flag due to an inverted hammer on the hourly chart of the Nifty. The Nifty was predicted to be bullish provided it maintained an average traded price above the 4430 levels - a condition that was violated.
A steep fall thereafter and higher traded volumes indicate that the markets lack the firepower to sustain the upsides. The 4535 resistance advocated for Thursday held as the Nifty retraced from the 4530 level, thereby validating the retracement wave count employed herein. Traded volumes were higher, a negative trigger for a downtick day, especially in view of the negative market breadth.
The advance decline ratio combined on the NSE & BSE stood at 1283 : 2454. The capitalisation of the same was negative too as the commensurate figures stood at Rs 4442 crs : Rs 12485 crs.
The F&O data for the session on Wednesday indicated a 0.57 per cent increase in open interest which is attributed to price appreciation on Wednesday more than an increase in fresh build up of contracts.
The indices have closed at the lower end of the intraday range which is a negative indicator. That the market breadth was negative and the volumes higher only validate that weakness. The 4535 / 4390 range predicted for Thursday was totally accurate as the Nifty traded between the 4530 / 4390 itself.
The coming session is likely to witness a range of 4315 on declines and 4490 on advances. My investors will note that the 4300 - 4310 range keeps cropping up repeatedly in our computations as a reliable short term support.
The outlook for the coming session is that of abundant caution as the weekend factor coupled with overseas cues will dominate sentiments. The bar reversal signaled on the daily chart on Thursday indicates weakness in the near term. Avoid bottom fishing at all costs.
A steep fall thereafter and higher traded volumes indicate that the markets lack the firepower to sustain the upsides. The 4535 resistance advocated for Thursday held as the Nifty retraced from the 4530 level, thereby validating the retracement wave count employed herein. Traded volumes were higher, a negative trigger for a downtick day, especially in view of the negative market breadth.
The advance decline ratio combined on the NSE & BSE stood at 1283 : 2454. The capitalisation of the same was negative too as the commensurate figures stood at Rs 4442 crs : Rs 12485 crs.
The F&O data for the session on Wednesday indicated a 0.57 per cent increase in open interest which is attributed to price appreciation on Wednesday more than an increase in fresh build up of contracts.
The indices have closed at the lower end of the intraday range which is a negative indicator. That the market breadth was negative and the volumes higher only validate that weakness. The 4535 / 4390 range predicted for Thursday was totally accurate as the Nifty traded between the 4530 / 4390 itself.
The coming session is likely to witness a range of 4315 on declines and 4490 on advances. My investors will note that the 4300 - 4310 range keeps cropping up repeatedly in our computations as a reliable short term support.
The outlook for the coming session is that of abundant caution as the weekend factor coupled with overseas cues will dominate sentiments. The bar reversal signaled on the daily chart on Thursday indicates weakness in the near term. Avoid bottom fishing at all costs.
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