The markets opened on a weak note and ended the session with continued losses, as the bulls failed to keep the Nifty above the 4890 bullish pivot throughout the session. The indices have closed at the lower end of the intraday range as the bulls failed to provide support at all levels, in spite of bear covering. The intraday range specified for the Nifty between the 4950 / 4800 was violated as the Nifty tested the 4765 levels, thereby exceeding our intraday counts on the downside. 

The daily candle chart of the Nifty shows a large bearish candle, with a small lower shadow which indicates markets still seeking support on the downside. The 4800 level is advocated to be a rough and ready support stands violated and the bulls are at a sizable disadvantage along expected lines. For Tuesday intraday, staying above the 4850 level with higher volumes and open interest will see the bulls regaining their intraday domination over the bears. The Nifty sustaining below the 4800 levels may trigger a fresh bout of declines.

The coming session is likely to witness resistance at the 4875 levels. Support is likely at the 4700 levels. The wide range is due to the large base effect of Monday's intraday range. The bullish pivot for the session is likely at the 4850 levels above which the Nifty must stay throughout the session. The bearish pivot is at the 4800 levels below which declines may occur. Traders must watch these levels for signs of trend determination in the coming session. Vijay L. Bhambwani, CEO, BSPL India

(Share Manthan, November 22, 2011)