Saturday, December 7, 2013

Daily Market Trend Guide -- Thursday, November 28, 2013

MARKET REPORT                                                                                 November 28, 2013
The Markets thoroughly consolidated yesterday as it moved in either direction during the session and ended the day absolutely flat with very negligible loss. The Markets opened on a mildly positive note and after trading briefly in the positive territory, it silently slipped into the red. The Markets then formed a minor falling trajectory as it slipped further in the negative while giving day’s low of 6030.30 in the afternoon trade. The late afternoon trade and the second half of the session saw some recovery coming in as the Markets attempted a smart pullback from its lows. It not only recouped its intraday losses but also traded in the green for a briefly time while giving its day’s high of 6074. It held its 50-DMA as support as it finally ended the day at 6057.10, while posting a negligible loss of 2 points or 0.03% while forming a higher top and higher bottom on the Daily High Low charts.

MARKET TREND FOR TODAY

Today we enter the expiry day of the current November series and expect the session to remain heavily dominated with rollovers. Expect the Markets to open on a positive note today and it would continue to remain critically important for the Markets to stay above its 50-DMA which it has maintained as of now. Intraday trajectory would continue to remain important.

For today, the levels of 6095 and 6130 would continue to act as immediate resistance. The levels of 6057 would continue to remain important support at Close levels. The further support exist at 6010.

The lead indicators continue to remain in place. The RSI—Relative Strength Index on the Daily Chart is 47.5020 and it continues to remain neutral as it shows no bullish or bearish divergence or failure swings. The Daily MACD trades below its signal line.

On the derivative front, heavy rollovers continued as NIFTY December series added over 25.58 lakh shares or 22.28% in Open Interest. Both NIFTY and market wide rollovers have remained in line and even slightly better than the previous month.

Given the pattern analysis done along with reading the F&O data, it is clear that the Markets continue to consolidate. Even with some weakness creeping in, the range of 5930-5950 continue to remain a strong pattern support for the Markets. However, as of now, it continues to consolidate with a positive bias.

Given that today is the expiry day, we may see some volatility creeping in as well in the Markets. It would be important for the Markets to remain and trade above the 50-DMA levels. It is strongly advised to refrain from over exposure until we get directional consensus and also avoid shorts as there is no structural breach on the Charts. Overall, continuation of neutral outlook with mildly positive bias is advised for today.

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



No comments:

Post a Comment

Note: Only a member of this blog may post a comment.