MARKET REPORT March
24, 2014
The Markets had a very short session on Saturday which saw
the Markets trading absolutely flat for the entire session taking it nowhere
and finally ending the day on a absolutely flat note. The Markets opened on a
negative note and formed the intraday low of 6481.35 in the early minutes of
the trade. The Markets recovered from those levels after opening negative and
traded flat. Thereafter, the Markets continued to trade absolutely flat near
its previous day’s close levels. It did saw further intraday high of 6502.95
towards the end of the session. It however ended the day absolutely flat at
6494.90, posting a net gain of 1.70 points or 0.03% while forming a lower top
and similar bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Today, expect the Markets to open on a positive note and
continue with its up move in the initial trade. From last couple of sessions,
the Markets are in severe consolidation mode and are likely to remain so as
well. The Markets would open positive but intraday trajectory that it forms and
the derivative activity of the FIIs would likely to keep in consolidation mode
for some time with an overall upward bias.
For today, the Markets will face immediate resistance at
6530 and 6575 levels and supports would exist at 6470 and 6420 levels.
The lead indicators pose a neutral picture. The RSI—Relative
Strength Index on the daily charts is 65.9520 and it remains neutral as it
shows no bullish or bearish divergence or any kind of failure swings. The Daily
MACD remains bullish as it continue to trade above its signal line.
On the derivative front, the NIFTY has shed over 1.04 lakh
share of 0.52% in Open Interest. This shows that some mild churning of
portfolio and some rollovers have already begun and some mild offloading or
profit taking has also been witnessed. This
is likely to keep the Markets in consolidation period for some more
time.
As we have been mentioning in our previous editions of Daily
Market Trend Guide, the Markets have been consolidating in a broad trading
range with the levels of 6575 acting as a immediate top. Until the Markets
moves past this level there would be no run-away rise in the Markets. However,
the Markets would continue to remain in a broad trading range of 6420-6575
levels. Presently the Markets continue to trade in this broad trading range
with an upward bias.
All and all, as evident from the above reading, the Markets
are set to open positive and even if its sees consolidation again at higher
levels, shorts should best avoided. The Markets see more of churning of
sectoral portfolios and no major correction is expected until it trades above
6420 levels. Any such downside should be continued to used for stock specific
purchases. Overall, continuance of positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
