Pre market round-up Jan 07, 2014 08:30 hrs
The markets opened on an optimistic note and ended the day with losses as the bulls failed to keep the Nifty above the bullish pivot of 6210 in the latter half of the session. The NSE benchmark index ended with approx 0.30 % losses at close. The traded volumes were lower compared to the previous session which is a routine indicator for a bearish season. The market breadth was positive as the BSE & NSE combined advance decline ratio was 2250 : 1623. The capitalisation of the breadth was negative as the commensurate figures were Rs 5824 Crs : Rs 7141 Crs. The NSE gained Rs 3674 Crs in market capitalisation.
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The indices have closed at the lower end of the intraday range as the bulls failed to provide buying support at intraday higher levels. The intraday range advocated for the previous session between the 6245 / 6175 held as the Nifty trended within these levels, thereby validating our intraday parameters. The coming session is likely to witness resistance at the 6225 levels above which the 6265 maybe seen. Support is likely at the 6150 levels below which the 6130 maybe seen. The bullish pivot for the session is likely at the 6210 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 6190 levels below which declines may occur. Traders must watch these levels for signs of trend determination in the coming session.
The daily candle chart of the Nifty shows a larger bodied bearish candle, indicating the bears overwhelming the bulls, on an intraday basis. Follow up buying support which is critical to sustain any upthrust, was missing. For Tuesday intraday, the bulls must keep the Nifty spot above the 6210 level with higher volumes and open interest to regain their intraday domination over the bears. The Nifty sustaining below the 6190 levels may trigger a fresh bout of sales.
The market internals indicate a lower turnover due to the selling bias. The number of trades were lower and the average ticket size per trade was higher, which indicates poor retail buying interest. The capitalisation of the market was higher in divergence with a bearish session. The put call ratios indicate the bears squaring up their stock shorts on declines but ramping up their Nifty shorts.
| NSE cash figures | Jan 03, 2014 | Jan 06, 2014 | Change |
| Turnover Rs Crs | 10,901.05 | 10,607.11 |
293.94 |
| Number of trades | 58,74,195 | 55,51,950 |
3,22,245 |
| Capitalisation Rs Crs | 67,96,747 | 68,00,421 |
3,674 |
| Average value per trade - Rs | 18,558 | 19,105 |
547 |
| F&o Cues | Jan 03, 2014 | Jan 06, 2014 | Change |
| Nifty PCR | 0.87 | 0.89 |
0.02 |
| Bank Nifty PCR | 0.76 | 0.70 |
0.06 |
| Stock PCR | 0.47 | 0.45 |
0.02 |
| Marketwide PCR | 0.53 | 0.52 |
0.01 |
The outlook for the markets on Tuesday is that of caution, as long as the bears keep the Nifty below the 6190 levels.
Vijay L Bhambwani
(Ceo -
BSPLindia.com)
The author is a Mumbai based trader and invites feedback at vijay@BSPLindia.com.
Mandatory disclosure - the author has no exposure to the scrip/s recommended above.
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