MARKET REPORT November
12, 2013
The Markets continued to correct and ended the day in
negative for the 5th day in a row as it opened negative, declined
further and ended the day with losses. The Markets opened on a modestly
negative note and never really traded in the positive territory for the entire
session. After opening negative and declining further, the Markets made a very
sharp up move and recouped all of its losses as it gave its intraday high of
6141.45 in the early afternoon trade. However, it still did not enter the
positive territory. It did not sustain that recovery either and it slipped
again. It went on to give the day’s low of 6067.75 slipping over 80-odd points
and finally ended the day at 6078.80, posting a net loss of 61.95 points or
1.01% while continuing to form a lower top and lower bottom on the Daily High
Low Charts.
MARKET TREND FOR TODAY
Today’s analysis for
the Markets remains more or less on the similar lines like yesterday. Expect
the Markets to open on a flat to modestly negative note and look for directions. The Markets have breached
few of its support levels in previous couple of sessions and this might act as
resistance on its way up.
For today, the levels of 6090 and 6125 would act as
immediate resistance for the Markets. The supports exist at 6025 and then much
lower at 5975.
The lead indicators continue to remain mildly bearish. The
RSI—Relative Strength Index on the Daily Chart is 46.7924 and it has reached
its lowest value in last 14-days which is bearish. However, it does not show
any bullish or bearish divergences on the Charts. The Daily MACD continues to
remain bearish as it trades below its signal line.
the derivative front,
NIFTY Futures have continued to shed over 7.48 lakh shares or over 3.68% in
open interest. This signifies continuation of unwinding of long positions and
profit taking happening in the Markets.
From the above reading, certain points remain very clear and
similar like last couple of days. The Markets have breached few of its support
levels in last 5 sessions. Further to this, while doing this, it has continued
to shed net open interest. The lead indicators too remain mildly weak on the
Daily Charts. All of this point towards continuing phase of corrective
activities.
Having said this, it is also important to note that now, at
lease some fresh longs have been seen in select stocks. We will have to see net
addition in open interest while we see fresh longs being created. Until this
happens, range bound correction would continue. It is advised to continue the
policy of remaining light and keeping exposures under control. Liquidity should
be preserved for existing open positions. Continuation of positive caution is
advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.