MARKET REPORT
June 28, 2013
The Markets staged a very smart pullback yesterday, much on
expected lines which strengthened in the second half as the Markets ended the
day with robust gains. The Markets opened the day on a positive note on back of
favourable technicals, F&O data and global cues and traded sideways while
maintaining its gains in the morning trade. After trading sideways in the first
half of the session while smartly sustaining its gains, the gains in the
Markets intensified further in the second half. The Markets perked up further
and went on to give the day’s high of 5699.35. The Markets hovered around those
levels in the second half and finally
ended the day at 5682.35, posting a robust gain of 93.65 points or 1.68% while forming
a higher top and higher bottom on the Daily High Low Charts.
MARKTE TREND FOR TODAY
Today, technically speaking, since the Markets have ended
near the high point of the day, they are expected to open positive and continue
with their up move. However, today, we are set for something better than just a
positive opening. Expect a gap up opening again today and the Markets are
expected to open on a strong and gap up note and look for directions. The
opening levels would be just around its 200-DMA and it would be important to
see the behaviour of the Markets and the intraday trajectory it forms post
opening.
For today, the immediate resistance on the Charts post
opening would be the levels of 5755 and 5618, which is the 200-DMA for the
Markets.
The lead indicators continue to show positive bias. The RSI—Relative
Strength Index on the Daily Chart is 40.6859 and it is neutral as it shows no
failure swings or any kind of bullish or bearish divergences. The Daily MACD is
bearish as it trades below its signal line but is moving towards an positive
crossover.
On the derivative front, NIFTY Futures have went on to add yet another over
22.50 lakh shares in Open Interest and the NIFTY PCR has begun the month at
1.08.
All factors, global cues, the overall technicals and also
the F&O data which have been showing huge additions in open interest in
last couple of session will provide a very solid platform for a gap up opening
today. The increase in gas prices too will have its share of positive
sentimental effect. The opening would be around its 200-DMA levels and the
reaction to the Markets around those levels would be important.
All and all, we are set to have a good day ahead. Our strict
advice of not shorting in last couple of sessions in paying off now as such
sharp pullback was imminent and over due. Even if the Markets opens around its
200-DMA or notch below it, there are chances of a very mild profit taking and
even if the Markets consolidates around those levels, the bias remains positive
and the undertone certainly remains bullish as of now. Overall, positive
outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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