Saturday, December 28, 2013

Daily Market Trend Guide -- Friday, December 27, 2013



MARKET REPORT                                                                                December 27, 2013

The Markets had a relatively quiet and range bound recovery session yesterday as it spent the day in a capped ranged and ended it with minor gains. The Markets opened on a flat and modestly positive note and literally spent the entire session in 20-odd points range moving nowhere. The Markets traded in the most part of the day with lack of directional consensus. However, in the last hour and half of trade, the Markets saw a sudden spurt as it gave its day’s high of 6302.75 and saw equal sudden paring of those gains to slip into negative for a very brief period. After giving day’s low of 6259.45, it came back in to the green and ended the day at 6278.90, while forming a parallel  bar on the Daily High Low Charts.




MARKET TREND FOR TODAY


Today, we can expect a equally quiet opening in the Markets today. Today, the Markets are expected to open on a flat to mildly negative note and look for directions. The trading in January series is likely to open on a subdued note and the Markets can see lack of volumes due to current year-end holidays. The Session is once again expected to remain range bound.

The session is likely to see the levels of 6310 and 6345 as its immediate resistance and the levels of 6250 and 6210 are immediate supports on the Daily Charts.


The lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Charts is 56.4490 and it is neutral as it shows no bullish or bearish divergence or any kind of failure swings. The Daily MACD continues with its positive crossover reported yesterday and it remains bullish as it trades above its signal line. 


On the derivative front, the NIFTY January series have continued to add open interest. This signifies that there has been no major offloading at all in any of the previous two sessions and the Markets have kept its underlying trend intact so far.


Coming to pattern analysis, the Markets have continued to trade comfortably above all of its DMAs. The overall conclusion remains similar to that of our last few editions that the Markets have managed to keep the underlying trend intact and has not yet shown any structural  breach on the Daily Charts. This leads to the similar conclusion that we have been mentioning in our previous editions that the so long as the Markets keep its head above its 50-DMA, we will not see any significant weakness creeping in.


All and all, today as well, we will expect the Markets to remain range bound with the levels of 50-DMA acting as major support at the Close levels. While continuing to avoid shorts, it is advised to continue to use the downside / range bound consolidation to make selective purchases. Overall, it is advised to continue to approach the day with cautious optimism.


Milan Vaishnav,

Consulting Technical Analyst,



+91-98250-16331





  

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