MARKET
REPORT February
26, 2014
The Markets had a session of positive consolidation today as
it remained in arrange, with some volatility on expected lines and ended the
day on a positive note. The saw itself opening on a positive note and after a
decent opening, the Markets gained some more strength as it recorded its day’s
high of 6216.85. However, the Markets pared all of its gains in the first half
of the session. It came off its early highs and in the afternoon trade dipped
in the negative for a brief period while forming the day’s low of 6176.60. The
Markets saw reversal of intraday trend as it traded back into positive
territory and saw much of its losses being recovered. It finally managed to end
the day at 6200.05, posting a modest gain of 13.95 points or 0.23% while
continuing to form a higher top and higher bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
The Markets are expected to open on a quiet note again and
would look for directions. The yesterday’s session saw some positive
consolidation and today’s session would remain more or less on similar lines.
Today, we will have expiry of current February series (Tomorrow being a trading
holiday) and this would continue to see the session remaining dominated with
rollovers and positive consolidation.
For today, the levels of 6220 and 6255 would act as immediate
resistance on the Charts whereas the levels of 6180 and 6165 would act as
immediate supports.
The lead indicators continue to remain perfectly in shape. The
RSI—Relative Strength Index on the Daily Chart is 57.2139 and it has reached
its highest value in last 14-days which is bullish. It does not show any
bullish or bearish divergence. The Daily MACD continues to remain bullish as it
trades above its signal line.
On the derivative front, rollovers continued as NIFTY
February futures shed over 26 lakh shares or 21.01% in Open Interest whereas March
series added over 35% in total open interest.
Going by the pattern analysis, the Markets have moved past
its 100-DMA and 50-DMA at Close. If the consolidation has to the Markets will
have to remain in a capped range with the levels of 100-DMA acting as bottom.
The Markets will have to maintain levels above of 100-DMA or say, 6160-6150
range in order to avoid any weakness creeping in again and maintain its up
move.
All and all, the Markets are likely to spend some time in a
range. Given expiry today, the Markets are likely to see some volatility as
well and might witness a bidirectional movement. However, the undercurrent
certainly remains intact as of now. While avoiding shorts, selective purchases
may be made. Any existing profits on the up side should be protected as well.
Sectoral out performance would continue. Overall, cautious optimism 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.