MARKET REPORT October
18, 2013
The Markets remained in the corrective mode yesterday, much
on expected lines as it opened flat but gradually pared its gains during the
day to end the day with losses. The Markets opened on a flat note and rose to 6110.75
in the morning trade which became its day’s high. The Markets pared those gains
quickly and traded absolutely flat near its previous close in the entire
afternoon session. It dipped further into the red to give the day’s low of 6032.55
in the last hour of the trade. The Markets did not sustain even a feeble
attempt to recover and it finally ended the day at 6045.85, posting a net loss
of 43.20 points or 0.71% while forming a lower top and lower bottom on the
Daily High Low Charts.
MARKET TREND FOR TODAY
The resistance zone of 6130-6150 have so far held out as
immediate top for the Markets and the Markets have failed to move past them.
Today as well, the Markets are likely to give a modestly positive opening,
however, the intraday trajectory would continue to remain critically important
and the Markets are likely to continue to remain in the consolidation phase.
For today, the levels of 6130 and 6150 would continue to act
as immediate resistance. The supports come in much lower at 5980 and 5945
levels.
The RSI—Relative Strength Index on the Daily Chart is
60.3845 and it is neutral as it shows no bullish or bearish divergence or any
kind of failure swing. The Daily MACD continues to remain bullish as it trades
above its signal line.
On the derivative front, NIFTY October futures has added 71,200 shares or nominal
0.37% in open interest. We can say that the OI figures have remain practically
unchanged. This suggest that there was neither any unwinding of long positions
nor any shorts were seen created.
Given the above reading, it can fairly be said that the
Markets are under no directional consensus as of now and they very clearly
appear to be in a broad trading range and in consolidation phase. The analysis
remains more or less same as yesterday and the levels of 6130-6150 would
continue to act as immediate top for the Markets.
Overall, it can very fairly be concluded that that with the
levels of 6130-6150 acting as major resistance and immediate top, sustainable
up move shall occur only above these levels. Until then, the Markets would
continue to remain in a broad consolidating range with some amount of
volatility ingrained in it. While protecting existing profits, Markets should
be approached with caution and selective optimism.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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