MARKET REPORT December
24, 2013
The Markets continued to remain in a consolidation mood
while it continued it rollovers and ended the day on a flat note with modest
gains. The Markets opened on a positive note but spent most part of the session
in a 25-odd point capped range. The Markets remained very much sideways right
from morning trade until later afternoon trade. Post opening modestly positive,
the Markets had no directional consensus and thus while remaining sideways, it
continued to trade in a very narrow band on lower than average volumes. The
Markets saw a mild spurt in the late afternoon trade as it gave its day’s high
of 6317.50. It did not sustain this gain at all and pared it equally fast and
suddenly while it traded flat, and even dipped into the red for a brief while
giving day’s low of 6266.95. It finally ended the day at 6284.50, posting a
minor gain of 10.25 points or 0.16% while forming a higher top and higher
bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Tomorrow being a trading holiday on account of Christmas,
today we enter the penultimate day of expiry of current derivative series.
Today, the markets are expected to open on a flat note and look for directions.
The directions and trend of the Markets is likely to remain more or less like
yesterday as they are expected to trade in a range with lower volumes.
Today, the levels of 6310 an 6345 are immediate resistance
levels on the Charts. The support exists at 6260 and 6235 levels.
The lead indicators continue to remain in place. The
RSI—Relative Strength Index on the Daily Chart is 57.0769 and it is neutral as
it shows no bullish or bearish divergence or failure swings. The Daily MACD
continues to remain bearish as it trades below its signal line. But it is
moving towards reporting a positive crossover in coming days which would be a
bullish indicator.
On the derivative front, the rollovers continued across
markets as NIFTY January futures added over 52.48 lakh shares or 65.69% in Open
Interest.
Going by the technical charts, the Markets are likely to
remain in a range bound consolidation while keeping their overall trend intact.
Though we may see some volatility creeping in causing sharp movements on either
side driven by rollovers, the overall trend remains intact as the Markets have
not shown any sign of weakness or any kind of bearish developments on the Daily
Charts.
All and all, we can
expect a flat opening in the markets followed by a range bound trade at least
in the morning session. Though intraday trajectory would be important to decide
the trend for today, the session would certainly remain dominated with rollover
centric activities. While keeping exposures at moderate levels, cautious
optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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