MARKET REPORT December
09, 2013
The Markets had a consolidating session on Friday as it
spent the session in a narrow range and finally ended the day with modest
gains. The Markets opened on a modestly positive note and spent the first half
of the session in positive territory and thereafter paring of gains. By
afternoon the Markets traded flat with as it dipped into negative for a while
as it gave its intraday low of 6230.75. It spent the afternoon trade in a very
narrow and capped range. However, the last hour and half of the trade saw the
Markets attempting to pullback as it went on to give the day’s high of 6275.35.
It hovered around those levels for a while and finally ended the day at
6259.80, posting a very modest gain of 18.80 points or 0.30% while forming a
slightly lower top and lower bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Today, the Markets are all set to give a thumbs-up reaction
to the Assembly elections which has seen the current congress government
getting routed out of power. The Markets are set to open on a very strong and
gap up note as this is viewed much positively by the Markets. Today’s opening
levels would see the Markets opening to its all-time highs.
Today, the markets may find resistance near 6350 and 6375
levels, just technically speaking as this would be an uncharted territory.
These are just statistical levels, derived with the help of trend lines and
patterns.
The lead indicators remain firmly in place. The RSI—Relative
Strength Index on the Daily Chart is 59.5341 and it has reached its highest
value in last 14-days which is Bullish. It does not show any bearish or bullish
divergence. The Daily MACD continues to stay bullish while it trades above its
signal line.
On the derivative front, NIFTY has added over 4.78 lakh
shares or nearly 2.52% in open interest. This shows that the we have had
positive consolidation on Friday which had an positive bias.
Going by the inputs above and the perceived positive noting
of the Assembly elections, the Markets are set to give a all time high as it is
set for a very strong and gap up opening today. The Markets are more or less
likely to maintain these levels as such.
Overall, though gap up opening is almost set today, it is
advised to protect profits wherever applicable and continued to make selective
purchases rather than frenzied buying. The Markets have set a bullish undertone
but it would be obvious to see some profit booking coming in, though very
small, at higher levels. Overall, strong positive outlook is advised for today
as well.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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