MARKET REPORT
June 11, 2013
The Markets had a terrible session yesterday as it remained
highly volatile while failing to capitalize on positive opening. The Markets
opened on a positive and stronger note aided by strong global markets. However,
after opening on a stronger and positive note, the Markets gave its intraday
high of 5931.65 in the very early minutes of the trade. Immediately after a
stronger opening, the Markets transformed itself into falling channel and
trajectory and kept losing ground gradually. It came off it day’s high and
traded flat by late afternoon trade. The Markets moved with capped gains in the
most post of the session in sideways trajectory. However the Market saw some
pressure building up again in the last hour and half of the trade. It came off
again and dipped into the negative territory to give the day’s low of 5857.40.
The Markets came off again from those lows and finally ended the day flat with
minor loss of 3 points or 0.05% while forming a lower top and lower bottom on
the Daily High Low charts.
MARKET TREND FOR TODAY
The Markets have headed nowhere yesterday despite stronger
opening. Today, on the other side, expect the Markets to open moderately on the
lower note and look for directions. Today, the Markets are most likely to open
below its 100 and 50-DMA levels and these levels shall act as resistance for
the rest of the session. It would be crucial to see if after opening lower, the
Markets shows any resilience or continues to drift lower.
For today, since the Markets are expected to open lower, the
levels of 5892 shall act as resistance for the rest of the session. The supports
come in at 5810 levels.
The RSI—Relative Strength Index on the Daily Chart is
40.5902 and it has reached its lowest value in last 14-days which is bearish. However,
it does not show any bullish or bearish divergence. The Daily MACD continues to
trade below its signal line and remains bearish.
On the derivative front, NIFTY Jun futures have shed 1.57
lakh shares or 1.27% in Open Interest. This signifies that minor offloading has
continued. No shorts have been created or fresh longs have been initiated so
far.
Having said this, it is important to note two things. One,
the Markets has ended a notch below its 100 and 50-DMA and this is certainly
bearish. With the Markets slated to open lower today, these levels shall
continue to pose resistance for today as well as for the next days to come. It
would be very important for the Markets to move up and trade above 5895-5900
levels in order to avoid any weakness. Two – there is one positive sign as well
which can help the Markets to behave in resilient manner. The two DMAs, i.e.
the 100 and 50-DMA are attempting a positive crossover. There are chances that
the 50-DMA cuts the 100 from above, which is a positive and bullish formation
and likely to lend support and resilience to the current Market conditions.
All and all, as of today, the Markets lacks any positive
triggers on the upside and the immediate reading is the with the lower opening
slated, the levels of 5895-5900 shall continue to pose resistance in the
immediate short term. However, with minor chances of recovery from lower levels
still remaining, we continue to advice to keep protecting profits vigilantly
until the Markets gets clear directional bias. Until this happens, positions
too should be maintained in highly selective manner. Overall, cautious approach
with mild optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.