Monday, December 30, 2013

Daily Market Trend Guide -- Monday, December 30, 2013

MARKET REPORT                                                                                December 30, 2013
The Markets had a relatively stable session on Friday as it opened positive and ended the day with decent gains while maintaining its opening levels. The Markets saw the opening of the January series on a relatively quiet note as it saw a modestly positive opening. After opening, the Markets kept making gradual new highs, though in a capped range as it gave its intraday high of 6324.90 in the early afternoon trade. The Markets never came off from these levels much as it continued to spend the entire session in a very narrow and capped range. The Markets saw the entire session in a sideways trajectory. The entire session was spent in a 20-odd point trajectory as no volatility was seen. It finally ended the day at 6313.80, posting a decent gain of 34.90 points or 0.56% while forming a higher top and higher bottom on the Daily High Low Charts.


MARKET TREND FOR TODAY

Today, we are likely to see the Markets opening on a flat to mildly positive note and looking for directions again. The year end time after Christmas is seeing very less participation and volumes in the Markets which is usual and it would be like this today as well until next week. The Markets are likely to maintain an overall positive bias while trading in a range. 

The levels of 6335 and 6360 are likely to act as resistance on the Daily Charts and the levels of 6275 and 6250 are likely to act as immediate supports for the Markets.

The lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Charts is 58.8605 and it is neutral as it shows no bullish or bearish divergence or any failure swings. The Daily MACD continues to remain bullish as it trades above its signal line.  On the Weekly Charts, the Weekly RSI is neutral at 60.3229. The Weekly MACD too is bullish as it continues to trade above its signal line.

On the derivative front, NIFTY January futures have added over 7.86 lakh shares or 4.15% in Open Interest. This is a positive indication and no unwinding of positions has been observed in the previous session.

Overall, the Markets continue to remain in positive structure. It continues to trade above its all three DMAs and continued to consolidate in previous session. On Friday it made an attempt to continue with its up move and it would be important to see that the Markets continue with their up move or if it consolidates. The intraday trajectory would continue to remain important.

Overall, all lead indicators and the overall structure of the Markets on technical chart remain perfectly in shape and intact. Any downside or weakness if at all we see would be more of a consolidation and would be temporary. Any such phase should be used to make selective purchases while protecting profits at higher levels. While continuing to strictly avoid shorts, positive outlook is advised for today.

Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331


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