MARKET REPORT March
03. 2014
The Markets had a positive session on Friday as it opened
positive, remained in capped range and saw a spurt in the second half of the
session to end the fifth day with gains. The Markets opened on a modestly positive
note. After opening on a modestly positive note, the Markets spend the first
half of the session in a capped range. Though it traded in a very narrow band,
it continued to remain in positive territory though it came off its opening
highs to form the day’s low of 6228.10. However, the second half of the session
saw some strength coming in the Markets as it strengthened further. It saw a
sharp gains across the board and went on to form the day’s high of 6282.70. It
finally managed to end the day at 6276.95, while posting net gain of 38.15
points or 0.61% while forming a higher top and higher bottom on the Daily High
Low Charts.
MARKET TREND FOR TODAY
Today, expect the Markets to open on a flat to mildly
negative note and look for directions. The Markets have risen over past several
sessions and the chances of positive consolidation cannot be ruled out. There are
chances that we may see the session in a capped range with some minor profit
taking being seen initially. However, the intraday trajectory would remain
important as under current continues to have positive bias.
For today, the levels of 6310 and 6350 will act as immediate
resistance levels. The supports would exist at 6245a and 6230 levels.
The lead indicators continue to remain perfectly in place. The
RSI—Relative Strength Index on the Daily Chart is 63.3690 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 is bullish as it trades above its
signal line.
On the derivative front, NIFTY March futures have added 98,300
shares in Open Interest. The NIFTY PCR remains unchanged at 0.94. Fresh longs
have seen to have been added in the second half of the session.
The Markets have successfully reversed their trend after
taking support at its 200-DMA couple of times. Currently the Markets have
successfully given a trend reversal and now trades above all of its DMAs. In
even of consolidation, the Markets should see a range bound trade while trading
above all of its DMAs.
All and all, today, though some consolidation and mild profit
taking cannot be ruled out, the overall under current certainly continues to
remain bullish. In case of some downticks, shorts should be avoided and such
situations should be used to make selective purchases as sectoral out
performance would continue. Overall, while protecting profits at higher levels,
positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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