MARKET REPORT August 30, 2013
The Markets had a phenomenal session yesterday as it
continued to recover in a robust manner not so much on expected lines but ended
the day on a very strong note. The Markets opened on a positive note and traded
positive but in a capped range with limited gains in the first hour of the trade.
However, it further fortified itself and remained in upward rising trajectory
for the rest of the session as it kept making new highs with gradual and steady
up moves. It went on to give the day’s high of 5428.90 towards the end of the
session. It came off a bit, but settled the day at 5409.05, posting a robust
gain of 124.05 points or 2.35% while forming a sharply higher top and higher
bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
The Markets have risen over 310 points from the intraday
lows that it made on 28th, just a day before yesterday. Given this,
if we attribute this rise to the settlements rollovers of the shorts in the next
month, we can fairly expect the Markets to open flat and consolidate again with
the levels of 5500-5515 acting as immediate resistance for the Markets.
Today, the levels of 5500-5515 would act as immediate
resistance for the Markets. The supports stand at 5350 levels.
The RSI—Relative Strength Index on the Daily Chart is
41.3263 and it is neutral as it shows no bullish or bearish divergences. It
does not show any failure swings as well. The Daily MACD still continues to
trade below its signal line.
On the derivative front, both the NIFTY and Market wide
rollovers have been decently completed and the two days of recovery can be
attributed to heavy rollover of short positions in the Markets.
There are no specific technical cues for today. The Markets
have risen over 310 points from the lows of the day since day before yesterday.
This can fairly indicate that if the Markets consolidates a bit or sees minor
profit taking, it would be fairly on expected lines.
All and all, we are set to have a range bound and also bit
volatile session. With the recovery of over 310 points in a go, one cannot rule
out the possibility of some profit taking from higher levels. However, some
selective out performance would continue to be seen. Some sectors which did not
participate in last two days can be expected to out perform. It is advised to
concentrate on protecting profits wherever possible in a vigilant manner and
remain very selective in making new purchases.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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