| Bullish pivot seen at 2585 | |
| TECHNICALS | | Vijay Bhambwani / Mumbai November 21, 2008, 0:43 IST | |
The markets dived yet again as the “bull sha-keout” pattern advocated yesterday had its anticipated impact. The turnover contracted and the market bre-adth was negative as the combined exchange figures were 791 : 2928. The capit-alisation of the breadth was also negative as the commensurate figures were Rs 886 cr : Rs 6897 cr.
The indices have closed at the lower end of the intraday range and on lower volumes. The 2725 / 2520 range advocated for Thursday held loosely as the Nifty bounced from the 2503 levels.
The selling pressure is sho-wing initial signs of abating in the near term and the possibility of minor support after three days of closing at the lower end of the daily range cannot be ruled out.
The coming session is likely to witness a range of 2635 on advances and 2470 on declines. The bullish pivot for the coming session will be at the 2585, above which the Nifty may turn positive and the bearish trigger will be below the 2550 mark.
The market internals indicate a lower turnover as the participation levels fell due to the weakness. The number of trades decreased and the average ticket size was lower, indicating a lower selling bias. The capitalisation of the market was lower in line with a downtick session.
The outlook for the com-ing session is that of caut-ious optimism as the weekend factor is likely to see reduced bearish aggression. Should the overseas cues be positive, expect a stable to positive session.
Vijay L Bhambwani
(CEO - BSPLindia.com)
(He is a Mumbai-based investment consultant)
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