MARKET REPORT April
29, 2014
The Markets retraced yesterday but the yesterday’s session
remained terribly range bound as the Markets spent the entire session in a
20-odd points range while ending the day on a modestly negative note. The
Markets opened on a mildly negative note and after trading in a range, dipped
further to report the day’s low of 6750.30. The Markets soon recovered from
that level but continued to trade in the negative territory. However,
thereafter, the Markets just did not show any directional bias and traded in a
very narrow and capped range in the sideward trajectory. The Markets traded in
this manner until the end and finally ended the day at 6761.25, posting a net
loss of 21.50 points or 0.32% while forming a sharply lower top and lower bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Today, we would witness a session quite similar to that of
yesterday. The Markets are likely to open on a quiet to modestly negative note
and look for directions. The trajectory that the Markets form would be critical
but the overall bias remains towards some consolidation / correction continuing
in the Markets with the level of 6869 acting as its immediate top.
For today, the levels of 6785 and 6820 would act as
immediate resistance for the Markets. The supports exit much lower at 6710 and
6665 levels.
The lead indicators continue to remain weary on the Daily
Charts. The RSI—Relative Strength Index on the Daily Chart is 59.1765 and it
continues to remain neutral as it shows no bullish or bearish divergences or
failure swings. The Daily MACD continues to remain bearish as it continues to
trade below its signal line.
On the derivative front, the NIFTY May futures have added
over 3.64 lakh shares or 2.71% in Open Interest. The NIFTY PCR stands at 1.12
as against 1.14. The increase in OI indicates that some amount of shorts have
started to exist in the system as it has come with the decline in futures.
The patterns on the Daily Chart remain same. The Markets are
showing signs of tiredness and the level of 6869 has become an immediate top
for the Markets. The Markets with either consolidate or correct but any
sustainable up move shall occur only when the Markets moves past this level.
Until this happen, it would continue to show erratic behaviour on the Daily
Charts.
All and all, we continue with our advice to remain moderate
on positions. The reason behind this is that the patterns on the Markets are
little overstretched and because of this, any possibility of a correction from
these levels cannot be ruled out. This situation is very typical when the
overall up moves are dictated with FII money which often tend to neglect
technicals for some time. Therefore, while remaining moderate on the positions,
cautious outlook should be maintained for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
