MARKET REPORT October
28, 2013
The Markets continued to
remain in corrective state on Friday as it ended the day with minor
losses after moving in either directions. The Markets opened on a modestly
negative note and remained in negative territory for the first half of the
session while it made its day’s low of 6125.95. In the second half, it saw a
sudden spurt as it attempted to recovery from its day’s lows. It recovered all
of its gains to trade momentarily in the positive territory while giving its
day’s high of 6174.75. The Markets did not sustain these levels either. After hovering
around these levels for a while, it pared ground again and finally ended the
day at 6144.90, while posting a net loss of 19.45 points or 0.32% while forming
a lower top and lower bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
The resistance zone of the levels of 6230-6250 have been
held as of now as the Markets have resisted and came off almost 4 times in last
week. However they continue to remain in consolidation zone. Today as well,
expect the Markets to open on a modestly positive note and look for directions.
The Markets would react to the RBI Credit policy tomorrow and until then, would
remain in consolidation zone.
The levels of 6175 and 6230 are immediate resistance levels
for the Markets today. The supports come in at 6110 and 6065 levels.
The RSI—Relative Strength Index on the Daily Chart is
62.0055 and it is neutral as it does now show any kind of failure swings or any
kind of bullish or bearish divergences. The Daily MACD continues to trade above
its signal line.
On the Weekly Charts, the Weekly RSI is neutral at 59.89.25
as it shows no failure swings or any divergences. The Weekly MACD too continues
to trade above its signal line.
On the Derivative front, NIFTY October futures have shed
over 11.14 lakh shares or 6.47% in Open Interest. Even the total cumulative
Open Interest have shown a reduction which shows that profit taking at higher
levels and unwinding of long positions is seen.
Given these reading and going by the pattern analysis as
well, it is clear that the levels of 6230-6250 have been an immediate top for
the Markets as of now. Fresh sustainable up move shall occur only after the
Markets move past these levels. Until this happens, it is likely to remain in
broad trading range. As mentioned above here, the Markets would also give some
volatile reactions to the RBI Credit Policy slated for tomorrow.
Overall, the broad analysis remains more or less similar as
the Markets continues to remain in broad consolidation stage. Coupled with
this, we also enter the expiry week and the session would remain dominated with
rollover activities. Shorts, under such circumstances should be avoided.
Sectoral out performance would continue and therefore, selective purchases
should be made. Overall, positive caution is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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