MARKET REPORT July 03, 2013
The Markets finally took a breather after three days of a
very strong pullback as it opened modestly negative and spent the session in a
capped range to weaken further to end with losses. The Markets opened on a
modestly negative note, quite on expected lines and traded in a much capped
range. For the most part of the session, the markets traded in a 20-odd points range
and kept moving in either direction within this range. However, the last hour
of the trade saw some more weakness creeping in as the Markets slipped further.
Towards the end, it went on to give the day’s low of 5852.30. After hovering around
this level, the Markets finally ended the day at 5857.55, posting a net loss of
41.30 points or 0.70% while forming a slightly lower top but higher bottom on
the Daily High Low charts.
MARKET TREND FOR TODAY
For today, expect the Markets to open on a lower note and it
is likely that it continues with its corrective activity but at the same time,
resilience is expected from the Markets again. It is very much likely that the
Markets may see itself opening around its 200-DMA levels and it might improve
as we go ahead in the session. The opening levels and the intraday trajectory
that it forms after opening would be critically important for the Markets.
The levels of 5890 and 5925 are immediate resistance levels
for the Markets and supports come in at 5826 and 5790 levels.
The lead indicators do not show any weakness. The RSI—Relative
Strength Index on the Daily Charts is 52.6671 and it is neutral as it shows no
bullish or bearish divergence or any kind of failure swings. The Daily MACD is
bullish as it trades above its signal line.
On the derivative front, NIFTY July futures have shed a
nominal 1.61 lakh shares or 1.06% in open interest. This signifies minor profit
taking at higher levels after pullback of over 300-odd points in NIFTY.
Overall, the world markets have remained flat yesterday and
no major weakness have been seen there. Here, on the domestic front, there is no impending weakness or any
such signals on the Daily Charts. After 300-odd points of rise, the Markets have
seen minor profit taking and today it is likely to take support around its
200-DMA levels at Close. It would be important for the Markets to maintain
close levels above its 200-DMA to avoid any further weakness creeping in.
All and all, today as well, we are likely to have a lacklustre
session. The Markets might open weak and negative but with the opening slated
around its 200-dma, we can expect some resilience. There are chances that we
see the Markets trading in a range post opening and improving as we go ahead.
Intraday trajectory would be important. With no bearish signals on the Charts,
we continue to advice to avoid shorts. Cautious optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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