MARKET REPORT November
05, 2013
The Markets had a typical Mahurat Session on Sunday as it
opened positive, spent rest of the session in a narrow 20-odd points range and
ended the day with nominal gains. The Markets opened positive and formed its
day’s high of 6342.95 in the early minutes of the trade. It however, came off
its lows and spent rest of the session almost sideways with little downward
bias. It finally ended the day at 6317.35, posting a nominal gain of 10.15
points or 0.16%.
MARKET TREND FOR TODAY
There are little signs of weariness in the Markets as seen
through pattern analysis and the reading of lead indicators as well. Today,
expect the Markets to open on a modestly negative to flat note and look for
directions. There are bright chances
that the Markets consolidates a bit from these levels before it s resumes its
upward journey.
The levels of 6340 and 6365 would act as immediate resistance
levels for the markets. Supports exist
at 6250 and 6210 levels.
The RSI—Relative Strength Index on the Daily Chart is
69.5775 and it has reached its highest value in last 14-days which is bullish.
The Daily MACD continues to trade above its signal line.
On the derivative front, NIFTY November futures has added
some 1.14 lakh shares or little over 0.50% in open interest. Open Interest
remains nearly unchanged indicating no major additions or unwinding of
positions.
Given from the above facts, it is clear that there are no
such indications that would mean any serious correction in the Markets. At the
same time, with little upward move, the Markets would enter the “overbought”
territory. Given this reading, and going by the pattern analysis done along
with reading of the lead indicators, it would be healthy for the Markets if it
consolidates a bit before inching upwards. There are chances that the Markets
takes little time, before it inches upwards.
All and all, with the above reading, we may continue to see
some amount of volatility ingrained in the Markets. The Markets may remain
range bound but it would continue to trade in a broad trading range. Though
selective purchases can be made, the profits too will have to be vigilantly
protected at higher levels. Shorts should be clearly avoided. Overall, positive
caution is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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