MARKET REPORT January
02, 2014
The Markets witnessed yesterday a very lack lustre and
listless session yesterday and it spent the entire session in a very narrow
range to end the day on a flat note. The Markets opened on a positive note and
soon formed its intraday high of 6327.20 in the morning trade. However, low
volumes and lack of participation continued in the Markets. The Markets slowly
pared its gains to trade flat by afternoon. It briefly dipped into negative in
the late morning trade while it gave its intraday low of 6298.25. It came back
into the green by the end of the session but ended the day at 6301.65, posting
a very negligible loss of 2.35 points or 0.04% while forming a slightly higher
top and higher bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Today, we would expect the Markets to behave in a similar
manner like that of previous few sessions. Expect the Markets to open on a flat
and quiet note and also expect the Markets to see low volumes and lack of participation.
This is likely to keep the analysis again similar to that of yesterday and the
levels of 6345 would continue to act as immediate top.
For today, the levels of 6345 and 6370 would act as
immediate resistance and the levels of 6240 and 6192 are immediate supports on
the Charts.
The lead indicators continue to remain intact. The RSI—Relative
Strength Index on the Daily Chart is 57.3794 and it continues to remain neutral
as it shows no bullish or bearish divergences or any failure swings. The Daily
MACD is bullish as it continues to trade above its signal line.
On the derivative front, the NIFTY January futures have
added a nominal 67,950 shares or 0.34% in Open Interest. We can say that the OI
remains more or less unchanged and no decline is registered and therefore no
shorts or any offloading of positions is seen in the Markets.
The overall tone of the analysis, as we have been
off-repeating in some previous editions remains similar for today as well. The
Markets continues to remain structurally intact and trades above all its three
DMAs. However, the Markets are seeing a very narrow and capped movement over
past few sessions due to holiday season and therefore it is witnessing such
sessions due to lack of volumes and participation. Also, the levels of 6345
would continue to act as a immediate top for the Markets and fresh sustainable
up move shall occur only after the Markets move past this level.
All and all, the trend remains intact and the Markets would
continue to see a ranged movement while trading with a upward bias. There are
no triggers for creating any shorts and therefore it should be best avoided.
There would be stock specific action seen and selective out performance would
occur. Any flip side should be utilized to make fresh purchases. Overall,
continuation of positive caution is advised in the Markets for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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