MARKET REPORT November
03, 2014
The Markets on Monday had a session very much on expected
lines as it consolidated at higher levels and ended the day on absolutely flat
note. The Markets did see a positive opening but formed its intraday high of 8350.60
in the very early minutes of the trade. Thereafter, it immediate slip in the
negative territory after paring the opening gains. The Markets spent the rest
of the session moving in sideways trajectory. It traded in a much capped range
of 20-odd points. It saw persistence of sideways trajectory while it formed its
intraday low of 8297.65 in the last hour of the trade. Minor recovery was a
seen again from those levels as the Markets finally ended the day at 8324.15,
posting a nominal gain of 1.95 points or 0.02% while forming a higher top and
higher bottom on the Daily Bar Charts.
MARKET TREND FOR WEDNESDAY, NOVEMBER 05, 2014
The Markets would open today after a trading holiday
yesterday and would adjust to the global movements we had yesterday. Expect the
Markets to open on a flat and quiet note and look for directions. Speaking
purely on technical grounds, the Markets are more likely to consolidate rather
than give a runaway rise further. In event of positive up move, profit taking
from higher levels cannot be ruled out. However, overall resilience is
expected.
The levels of 8350 and 8375 would act as resistance and the
levels of 8260 and 8210 would act as supports.
The RSI—Relative Strength Index on the Daily Chart is 71.0579
and it has reached its highest value in last 14-periods which is bullish.
However, it does not show any bullish or bearish divergence and it trades in “overbought”
zone. The Daily MACD remains bullish trading above its signal line.
On the derivative front, the NIFTY November futures have
added over 6.31 lakh shares or 3.04% in Open Interest. This signifies creation
of fresh longs and we can see some resilience from the Markets in event of any
profit taking from higher levels making it more prone to consolidation rather
than correction. The NIFTY PCR stands at 0..94 as against 0.93.
Taking a look at pattern analysis, the Markets have touched
its upper rising trend line of broadening formation once again on both Daily
and Weekly Charts. Such formations are least useful in determining breakouts
due to ever rising upper trend line. However, such trend lines continue to pose
resistance at upper levels. With the Markets remaining overbought, it is likely
to see some consolidation again at higher levels before it forms a fresh area
pattern and attempts to move on the upside again.
Overall, it is likely that Markets may see a mildly positive
or quiet opening but it would be prone to profit taking from higher levels.
However, in such case, it would show resilience and would see it self
consolidating again. It is once again advised to protect profits very
vigilantly at higher levels and keep making selective purchases. Overall, cautious
optimism is advised for the day.
Milan Vaishnav,
Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA
www.MyMoneyPlant.co.in
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA
www.MyMoneyPlant.co.in
+91-98250-16331
