MARKET REPORT December
02, 2013
The Markets continued to witness buoyancy on the beginning
of new derivative series as it opened on a stronger note, strengthened further
and remained in sideways trajectory by maintaining its gains and ending the day
on a buoyant note with decent gains. The Markets opened stronger and soon went
on to give its day’s high of 6182.50 in the early morning trade. Soon after
that the Markets remained in sideways trajectory for the rest of the session as
it fiercely maintained its gains. The Markets maintained that range and ended
the day at 6176.10, posting a decent gain of 84.25 points or 1.38% while
forming a higher top and higher bottom on the Daily High Low Charts.
MARKET TREND FOR TO DAY
Today, expect the Markets to open on a modestly positive to
flat note and maintain its levels at least in the initial trade. The lead
indicators and the technical indicators on the Daily Chart remain firmly in
place and the Markets are likely to trade and consolidate with a positive bias.
Today, the levels of 6205 and 6230 are immediate resistance
on the Daily Charts and the levels of 6145 and 6110 are immediate supports.
The lead indicators continue to remain in place. The
RSI—Relative Strength Index on the Daily Charts is 55.4546 and it is neutral as
it shows no bullish or bearish divergence or any failure swings. The Daily MACD
trades below its signal line but its moving towards giving a positive crossover
on the Daily Charts. On the Weekly Charts, the RSI is 57.5727 and continues to
remain neutral like on the Daily Charts. The Weekly MACD continues to remain
bullish as it already trades above its signal line.
On the derivative front, the NIFTY December futures have
added over 8.71 lakh shares or 5.03% in open interest and this is certainly a
positive sign as fresh additions of long positions is seen.
Going by the pattern analysis on the Daily as well as Weekly
Charts, the trend remains neutral to bullish as the Markets continues to trade
above all of its moving averages. Even with a short term rise and the
consolidation that might follow, it
would continue to trade with a positive bias so long as maintains its levels
above its 50-DMA.
All and all, the Markets continue to trade with positive
bias. Even if it opens flat and consolidates, the bias would remain positive as
all technical factors and lead indicators remain in place. This is further
supported by pattern analysis and the F&O Data. Given this reading, even if
the Markets consolidate it would be a range bound consolidation and any
temporary downside should be used to make fresh purchases. While shorts should
be strictly avoided, overall positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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