MARKET REPORT March
14, 2014
The Markets continue to correct in the second half of the
session as it saw sudden paring of gains due to weakness seen in the last hour
of the trade as the Markets ended the day with modest losses. However,
yesterday’s losses would have still meant nominal gains for the Markets had
INFY not closed very weak as it remained single largest dragger on the Markets.
The Markets opened on a positive note and soon formed its intraday high of
6561.45 in the early morning trade. It traded sideways for the most part of the
session after this. However, the Markets saw sudden paring of gains in last
hour and half of the trade. The Markets pared all of its gains and also dipped
in the negative. It went on to form the day’s low of 6476.85 in the last
minutes of the session. It finally ended the day at 6493.10, posting a modest
loss of 23.80 points or 0.37% while forming a higher top but slightly lower
bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Expect the Markets to open on a modestly positive note again
and continue with its corrective activities at least in the initial session.
The Markets have been in consolidation period after giving a fabulous rise over
previous session and such consolidation is making the Markets healthy in the
immediate short term. The intraday trajectory would be important and we might
see some improvement in the intraday trend as we go ahead in the session.
For today, the Markets have resistance at 6525 and 6560
levels. The supports exist at 6470 and 6435 levels.
The RSI—Relative Strength Index on the Daily Chart is
69.2068 and it is neutral as it shows no bullish or bearish divergence. The
Daily MACD remains bullish as it continues to trade above its signal line.
On the derivative front, NIFTY March futures have added over
7.90 lakh shares or 4.24% in Open Interest. This is a very important indicator
that the Markets have seen fresh shorts being built up and has seen no major
offloading from higher levels.
Going by the pattern analysis, the Markets have been
consolidating in a broad trading range after stupendous rise in last couple of
sessions. Further to this, the FIIs though they have been selling in the
derivative segments and creating fresh shorts in the system, have been reported
net buyers in Cash segment. This very
clearly signifies that the Markets are just in corrective mode and the weakness
would have a very limited downside given these F&O figures.
All and all, it is advised to remain light on the Markets.
The Markets have just consolidating in a broad range and given this phenomenon,
it is strongly advised to continue to refrain from shorts as the Markets have
not shown any technical breach. While
remaining light on positions and maintaining high vigil over protection of
existing profits, any dip should be continued to be used to make fresh
purchases. Overall, cautious optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
