MARKET REPORT December
13, 2013
The Markets continued with its corrective action yesterday
as well as it opened on a negative note, remained in a sideways trajectory for
the most part of the session and weakened further towards the end to end the day
with losses. The Markets opened on a negative note and gave its intraday high
of 6286.85 in the early minutes of the trade. Thereafter, the Markets lost some
ground to trade further in the negative. The Markets spent the most part of the
session in a sideward trajectory moving in a narrow 20-odd point range. In the
last hour of the trade, the Markets saw some more weakness creeping in and it
went on to give the day’s low of 6230.55. It finally ended the day at 6237.05,
posting a net loss of 70.85 points or 1.12% while continuing to form a lower
top and lower bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
The Markets would react to bad IIP Data that came in
yesterday wherein it contracted to -1.8% and November CPI rose to 11.24%. The
Markets would react to this by giving a lower opening today. The Markets are
set to open on a lower note and look for directions. The intraday trajectory
would continue to remain critically important to see if the Markets improve as
the session progresses.
For today, the levels of 6255 and 6290 are immediate
resistance on the Charts. Whereas the levels of 6205 and 6180 would act as
immediate supports.
The RSI-Relative Strength Index on the Daily Chart is 51.28
and it remains neutral with no bullish or bearish divergences or any failure
swings. The Daily MACD continues to remain bullish as it trades above its
signal line.
On the derivative front, has further added 2.06 lakhs shares
or 0.94% in Open Interest. With ever fall in last three sessions, the Markets
have added open interest. This clearly indicates that the Markets are seeing
fresh building of short positions which are expected to lend support at any
time now.
Given this, it is important to note that there has been no
structural breach as yet on the Charts. Further, whatever that we saw was a
minor correction which has remained range bound and also the F&O data shows
creation of fresh shorts in the system in the last 3 days of declining markets.
All and all, given this reading, it is advised to still
continue to refrain from short positions. Given the short positions in the
Markets, there are chances that the Markets may attempt to find support after
the negative opening. It is advised to make selective purchases with every
declines while protecting profits on existing positions. Overall, cautious
optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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