MARKET REPORT November
19, 2013
The Markets had a session of yet another sharp up move as it
continued with its up ward journey and ended the day with robust gains. The
Markets opened positive, even stronger than the expected note and maintained
its gains throughout the session. After trading sideways with decent gains in
the first half of the session, it got even stronger. In the second half, it got
even stronger as it went on to give the day’s high of 6196.80. It hovered
around those levels and maintained gains on the higher side and finally managed
to end the day at 6189, posting a very robust gain of 132.85 points or 2.19%
while continuing to form a higher top and higher bottom on the Daily High Low
Charts.
MARKET REPORT
The Markets have risen over 230-odd points in last two
sessions and today, we can see a flat opening and see the Markets consolidating
a bit. If the Markets consolidate, and even if it mildly corrects, it would be
healthy for the Markets in the immediate short term. The Markets would open
flat to mildly negative and look for directions while intraday trajectory
playing a important role to decide the trend for today.
For today, the levels of 6225 and 6240 would act as immediate
resistance for the Markets. The levels of 6150 and 6110 are immediate supports
for the Markets.
The RSI—Relative Strength Index on
the Daily Charts is 56.1796 and it is neutral as it shows no bullish or bearish
divergences or any kind of failure swings. The Daily MACD still continues to
trade below 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 7 rising windows in
the last 50 candles--this makes the current rising window even more
bullish.
On the derivative front, NIFTY November futures
have shed over 3.94 lakh shares or 2.20% in Open Interest. This signifies that
the short covering in the Markets have continued. Additions of fresh longs
would be required to take the rally ahead.
Given the above reading, with the Markets rising
over 230-odd points in previous two session and with the total open interest
being reduced, some correction in the Markets, or at least consolidation is
imminent and also required. There are fair chances that we see the Markets
consolidating in the near term. Addition of fresh longs and increase in OI
would be required to set the base for a further up move.
All and all, the Markets are likely to see a
mild correction or at least consolidation in the near term especially after one
way 230-odd points rise. We would see the Markets consolidating but the
undercurrent would continue to remain buoyant and bullish and the defensives
are likely to out perform. Any downside should be used to make selective
purchases. Overall, positive outlook is continued on the Markets.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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