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
