MARKET REPORT November
06, 2013
The Markets had a corrective volatile session, as such on
expected lines as it ended the day with losses after a volatile session. The
Markets opened the day on a negative note as expected and drifted further down
in the morning trade. In the late morning trade, it made an attempt to recover
from the opening lows as it managed to recoup most of its morning losses as it
gave its day’s high of 6304.75, though still continuing to trade in negative
territory. However, the Markets did not sustain these levels and gave up in the
last hour and half of trade. It went on to give the day’s low of 6244.30 and
finally ended the day at 6253.15, posting a net loss of 64.20 points or 1.02%
while forming a lower top and lower bottom on the Daily High Low charts.
MARKET TREND FOR TODAY
Expect the Markets to open on a modestly negative note again
and look for directions. As evident on the charts, the Markets should take
support in the 6230-6250 zone and if it breaches these levels on the downside,
we will see some more weakness creeping in. The intraday trajectory that the
Markets form after opening would be crucial to decide today’s trend.
The levels of 6310 and 6135 would act as resistance for the
Markets and the levels of 6230 and 6190 would act as supports.
The RSI—Relative Strength Index on the Daily Chart is
62.5643 and it is neutral as it shows no failure swings or any bullish or
bearish divergence. The Daily MACD continues to remain bullish as it trades
above its signal line. On the Candles, a falling window occurred. This
usually implies continuation of a
bearish trend.
On the derivative front, NIFTY November futures has shed
over 7.32 lakh shares or 3.16% in open interest. This is a negative indicator
as it signifies that some long unwinding has been done from higher levels
yesterday.
Given the pattern analysis read along with F&O data,
there are high chances that the Markets continue with their corrective mood and
drift lower. There are chances that the Markets attempt to take support at 6230
levels. Any breach below this would make the Markets little weaker and continue
with its correction. However, this will also keep the markets volatile seeing
movements on either side while lacking clear directional bias.
Overall, as mentioned, the Markets would remain little
volatile and continue to trade in a range with a corrective bias. It may see
lack of directional bias and continue to see mild profit taking. Intraday
trajectory would be crucial. While shorts should be avoided as there is no
structural breach on the Charts, even long position should be created
moderately.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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