MARKET RREPORT
July 10, 2013
The Markets yesterday continued to trade in line with what
was analysed in our yesterday’s edition of Daily Market Trend Guide. The
Markets opened above its 200-DMA levels on back of positive opening and
maintained the levels above 200-DMA for the entire session to end the day with
decent gains. The Markets opened on a positive note and traded with decent
gains in the morning trade, though in a capped range. During the second half of
the session, the Markets did lose some ground as it came off its morning highs.
However, last two hours of the session again saw the Markets going back towards
its morning highs. It went on to give the day’s high of 5864.95. It finally
ended the day at 5859, posting a decent gain of 47.45 points or 0.82% while forming
a higher top and higher bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
The Markets have ended the day near the high point of the
day and it is likely that the Markets shall open on a positive note and
continue with its up move, at least in the initial session. Post pullback of
over 300-points the market have been positively consolidating and is attempting
a successful trend reversal with an positive bias.
For today, the levels of 5890 and 5920 which is the 50-DMA
of the Markets are likely to act as immediate resistance for the Markets. The supports
come in at 5830 and 5775 levels.
The lead indicators remain neutral to bullish. The RSI—Relative
Strength Index on the Daily Chart is 52.4961 and it is neutral as it shows
no bullish or bearish divergence or failure swings. The Daily MACD remains
bullish as it continues to trade above its signal line. On the Candles, A rising window occurred (where the top of the
previous shadow is below the bottom of the current shadow). This usually implies a continuation of a
bullish trend. There have been 5 rising
windows in the last 50 candles--this makes the current rising window
even more bullish.
On the derivative front,
NIFTY has reported addition of over 5.38 lakh shares or over 3.63% in Open Interest. This is
certainly a positive sign as fresh longs have been added yesterday with a rise
and the rise is not just merely on account of short covering.
All and all, as mentioned earlier, the Markets have been positively
consolidating after a pullback of over 300-odd points. In the last couple of
sessions, the Markets have traded in a range of 70-80-odd points but have held
on to its major support levels and consolidated with positive bias. This
signifies that the markets are attempting a trend reversal after making recent
lows and after pulling back over 300-odd points is now consolidating for a
further up move.
However, the Markets will have to move past the levels of
5920-5930 levels for a fresh upward break out. Until this happens it would
continue to trade in a range and would continue to positively consolidate. In
such circumstances shorts should be strictly avoided and selective purchases
can be made on dips while protecting profits at any levels. Overall, cautious
optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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