MARKET REPORT November
28, 2013
The Markets thoroughly consolidated yesterday as it moved in
either direction during the session and ended the day absolutely flat with very
negligible loss. The Markets opened on a mildly positive note and after trading
briefly in the positive territory, it silently slipped into the red. The
Markets then formed a minor falling trajectory as it slipped further in the
negative while giving day’s low of 6030.30 in the afternoon trade. The late
afternoon trade and the second half of the session saw some recovery coming in
as the Markets attempted a smart pullback from its lows. It not only recouped
its intraday losses but also traded in the green for a briefly time while
giving its day’s high of 6074. It held its 50-DMA as support as it finally
ended the day at 6057.10, while posting a negligible loss of 2 points or 0.03%
while forming a higher top and higher bottom on the Daily High Low charts.
MARKET TREND FOR TODAY
Today we enter the expiry day of the current November series
and expect the session to remain heavily dominated with rollovers. Expect the
Markets to open on a positive note today and it would continue to remain
critically important for the Markets to stay above its 50-DMA which it has
maintained as of now. Intraday trajectory would continue to remain important.
For today, the levels of 6095 and 6130 would continue to act
as immediate resistance. The levels of 6057 would continue to remain important
support at Close levels. The further support exist at 6010.
The lead indicators continue to remain in place. The
RSI—Relative Strength Index on the Daily Chart is 47.5020 and it continues to
remain neutral as it shows no bullish or bearish divergence or failure swings.
The Daily MACD trades below its signal line.
On the derivative front, heavy rollovers continued as NIFTY
December series added over 25.58 lakh shares or 22.28% in Open Interest. Both
NIFTY and market wide rollovers have remained in line and even slightly better
than the previous month.
Given the pattern analysis done along with reading the
F&O data, it is clear that the Markets continue to consolidate. Even with
some weakness creeping in, the range of 5930-5950 continue to remain a strong
pattern support for the Markets. However, as of now, it continues to
consolidate with a positive bias.
Given that today is the expiry day, we may see some
volatility creeping in as well in the Markets. It would be important for the
Markets to remain and trade above the 50-DMA levels. It is strongly advised to
refrain from over exposure until we get directional consensus and also avoid
shorts as there is no structural breach on the Charts. Overall, continuation of
neutral outlook with mildly positive bias is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
