MARKET REPORT November
26, 2013
The Markets had a very buoyant session yesterday as it
opened on a stronger and positive note and even further strengthened its gains
in the second half of the session to end the day with robust gains. The Markets
opened on a positive note, in fact stronger than what was expected. It traded
in sideways trajectory until the afternoon trade while fiercely maintaining it
gains. In the second half of the session, the Markets gained further strength
as it went on to move past some of the critical resistance levels and gave its
intraday high of 6123.50. The Markets maintained these gains as well and
finally ended the day at 6115.35 while posting a robust gain of 119.90 points
or 2% and forming a higher top and higher bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
After a robust gain yesterday, expect the Markets to open on
a modestly negative note and look for directions. The consolidation would
continue and this being the expiry week, the action in the Markets would remain
dominated with the rollover activities as well. The Markets have moved past the
levels of 50-DMA and these levels shall act as support while it mildly corrects
or consolidates.
For today, the levels of 6145 and 6160 would act as
immediate resistance levels. The levels of 6050, which is 50-DMA today is
expected to act as support at Close levels.
The lead indicators continue to remain in place. The
RSI—Relative Strength Index on the Daily Chart is 51.17 and it is neutral as it
shows no bullish or bearish divergence or failure swings. The Daily MACD
continues to trade below its signal line.
On the derivative front, NIFTY November futures have shed
15.41 lakh shares or 11.14% in Open Interest while the December series have
added 23.12 lakh shares or 31.89% in open interest. This clearly signifies
heavy rollover centric activities taking place.
Going by the pattern analysis, as of now, the Markets have
taken support on its 50-DMA and it is expected to continue to do so. If we get
a mildly negative opening and if the Markets mildly corrects or consolidates,
the levels of 50-DMA, which is 6050 today, would act as support at close
levels. There has been no structural breach on the Charts as of now and there
would be no major weakness in the Markets until it maintains levels above 5950
levels.
All and all, after a robust gain yesterday, today would be a
day again of some mild correction and consolidation. Today’s analysis remains
more or less on similar lines and it is advised to strictly avoid over exposure
and shorts in the Markets until the directional bias is clear. Sectoral out
performance would continue. Adequate liquidity should be maintained to protect
open positions. Overall, neutral outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
