MARKET REPORT February
10, 2014
Volatility refused to go away on Friday as well as the Markets saw a very sharp and volatile
movements on either side before it ended the day with modest gains. The Markets
opened on a positive note following supportive global cues and remained
decently positive in the first half of the session while it gave its intraday
high of 6079.95. However, the Markets again saw a sharp paring of gains due to
what it looked like a basket sell. It came off from its highs, and after some
accumulation, lost further ground to dip marginally into negative and formed
its day’s low of 6030.90. However, the last 45 minutes of the trade saw a
equally sharp recovery from the lower levels. The Markets managed to recoup
most of its gains and it finally ended the day at 6063.20,l posting a net gain
of 26.90 points or 0.45% while forming a higher top and higher bottom on the
Daily High Low charts.
MARKET TREND FOR TODAY
The Markets are expected to open on a positive note and
continue with its up move, at least in the initial session. The oversold US
Markets have continued to inch up ward and the global cues remain supportive. The
Markets are likely to open positive, and proceed towards its one of the
important resistance levels of 100-DMA, and is likely to consolidate around
those levels again.
Today, the levels of 6100 and 6135 are important resistance
levels on the Daily Charts. The supports exist at 6070 and 5980 levels at
Close.
The lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Chart is 39.90 and it is neutral as it shows no
bullish or bearish divergence or failure swings. The Daily MACD continues to
remain bearish as it trades below its signal line. However, it is attempting to
change its course towards moving for a positive crossover in coming days.
On the derivative front, NIFTY February futures have shed
over 6.54 lakh shares or 4.08% in open interest. This shows that the in the
volatility that we saw on Friday, some offloading of positions have been
witnessed. This is likely to keep the Markets under more consolidation and
capped range while it attempts to move ahead.
Going by the pattern analysis on the Charts, the Markets
have attempted to find a bottom after taking support on its 200-DMA thrice. While
it attempts to confirm the bottom, some consolidation and minor profit
taking after a pullback cannot be ruled
out. During such times, it would be necessary for the Markets to overall form a
higher top and bottom and forms a rising channel after the recent lows.
All and all, so far as today’s session goes, the Markets are
likely to open positive. However, it would
be important to hold on and capitalize on the gains and maintain a
positive trajectory. Given the over all technical condition, there are chances
that the Markets consolidates here, or above from here near its 10—DMA levels.
Given this, it is necessary to continue to remain light on positions and
protect profits vigilantly at any level. Overall, positive caution is advised
for Markets today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
