MARKET REPORT
October 09, 2013
The Markets saw a strong opening on back of RBI steps to
increase liquidity in the system but as expected, the euphoria subsided as the
Markets slowly pared its gains but ended the day on a modestly positive note.
The Markets saw a stronger opening and in the first hour of the trade, gave its
intraday high of 5981.70. However, this euphoria subsided as the Markets
started to pare its gains slowly but steadily. By afternoon trade, it had pared
most of its gains and traded modestly in the positive. In the last hour and
half of the session, the Markets did make a feeble attempt to regain strength
but gave up again. It finally ended the day at 5928.40, posting a modest gain
of 22.25 points or 0.38% though it formed a higher top and higher bottom on the
Daily High Low Charts.
MARKET TREND FOR TODAY
Today as well, we will see the Markets opening on a modestly
negative note as look for directions. As the Markets remain in consolidation
phase, as like yesterday, the intraday trajectory would be crucial. The Markets
have continued to remain in a broad trading range and it is likely to continue
to remain in such consolidation phase for a while.
For today, the levels of 5980 and 6025 are immediate
resistance levels on the Charts. The supports continue to exist at 5910 and
further at its 200-DMA at 5840.
The RSI—Relative Strength Index on the Daily Chart is
57.4943 and it continues to remain neutral as it shows no bullish or bearish
divergence or any kind of failure swings. The Daily MACD too remains bearish as
it trades below its signal line. However, during this consolidation phase, it
is moving towards attempting a positive crossover.
On the derivative front, NIFTY October futures have shed
over 5.60 lakh shares or 3.50% in Open Interest. This is little negative as no
fresh longs were seen yesterday. On the contrary, there has been unwinding of
long positions from higher levels as evident from the F&O figures.
Given this reading and going by the pattern analysis, there
are chances that the Markets may still remain in consolidation phase for some
more time. The Markets may continue to positively consolidate and this can keep
the Markets to continue to remain in a broad trading range with some amount of
volatility ingrained in it.
All and all, the overall reading remains same as that of last
few days. The Markets are in consolidation phase and would remain so for some
time. Range bound trade would be seen with some volatility ingrained in it.
There are chances that post lower opening, we might see either range bound
trade or Markets recovering from lower levels. While avoiding shorts, any
downside should be used to make fresh selective purchases. However, since directional
consensus absent, cautious outlook is continued to be advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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