Saturday, December 7, 2013

Daily Market Trend Guide -- Tuesday, December 03, 2013

MARKET REPORT                                                                                 December 03, 2013
The Markets had a good session yesterday as it advanced itself for the third day in a row to end the day with decent gains. The Markets opened on a modestly positive note and the session remained more or less a range bound session. After opening modestly positive, the Markets advanced further in the morning trade as it gave its day’s high of 6228.80.  Post making this high, the Markets remained more or less again in sideways trajectory. It lost some ground as it came of its intraday highs a bit in the afternoon trade but recouped its earlier levels. It spent the most part of the session in some 25-odd points trajectory after making the day’s high and finally ended the day at 6217.85, posting a net gain of 41.75 points or 0.68% while continuing to form a higher top and higher bottom on the Daily High Low charts.

MARKET TREND FOR TODAY

 Today, we can see a day of consolidation again but this consolidation is likely to be a positive one. The Markets may open on a modestly negative note but improve as we go ahead in the session. The opening levels are expected to be around its intraday support levels and we may see the Markets coming off its intraday lows as we go ahead, as indicated by lead indicators.

For today, the levels of 6245 and 6270 are immediate resistance levels for the Markets. The supports exist at 6190 and 6170 levels.

The RSI—Relative Strength Index on the Daily Charts is 57.9146 and it has reached its highest levels in last 14-days.This is bullish. It does not show any bullish or bearish divergence. We had mentioned in our yesterday’s edition of Daily Market Trend Guide that the Daily MACD is moving towards reporting a positive crossover. Today, it has reported a positive crossover and it is bullish as it now trades above its signal line.

On the derivative front, the NIFTY December futures have gone on to add yet another 2.98 lakh shares or 1.64% in Open Interest. This goes on to signify that further fresh longs have been added.

Going by the lead indicators and the F&O data, it is pretty clear that the Markets have some more steam left to move upwards. Even going by the pattern analysis, the patterns remain intact and the Markets continue to remain in the immediate up trend. Going by all this, even if we see a modestly negative opening, it would be nothing more but a range bound consolidation with a upward bias. There would be very high chances that we may see the Markets improving as we go ahead in the session.

All and all, as mentioned above, we might see a modestly negative opening but bias certainly remains on the upside. Given this reading, it is advised to strictly refrain from entering shorts and use any temporary limited downside to make selective purchases. Positive outlook is advised for today.

Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331


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