MARKET REPORT December
12, 2013
The consolidation continued in the Markets yesterday as the
Markets remained in negative territory in a capped range and saw a spurt in
last thirty minutes of the trade to still end the day with modest losses.
The Markets opened on a negative note
and traded in capped range making gradual lows. In the afternoon trade, the
Markets dipped to form day’s low of
6280.25. It continued to see a range bound trade until the last hour of the
trade. In the last thirty minutes, the Markets attempted a sharp recovery as it
saw a sharp spurt from the lows of the day. It recover most of its losses, but
still ended the day post expiry at 6307.90, posting a net loss of 24.95 points or 0.39% while
continuing to form a lower top and lower bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Today, expect the Markets to open again on a negative note
and continue with its corrective activities, at least in the initial trade. The
Markets have been witnessing a correction after euphoric reaction to the
assembly election results on a lower volume. Today as well, it would see such
activity but like yesterday, we can see improvements coming in as we go ahead
in the session. Intraday trajectory would remain critical to decide the trend
for today.
For today, the levels of 6345 and 6370 would act as
resistance whereas immediate supports exist at 6280 and 6255 levels.
All lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Chart is 60.14 and it is neutral as it shows no
bullish or bearish divergences or any kind of failure swings. The Daily MACD
too remains bullish as it continues to a trade above its signal line.
On the derivative front, NIFTY December futures have added a
nominal 61700 shares or 0.21% in Open Interest. This continues to show that no
major profit taking has been witnessed in the Markets.
Going by the pattern analysis, the Markets have been
consolidating after a euphoric reaction to the assembly results, as mentioned
earlier. The lead indicators and the F&O data clearly show that there is
certainly no negative breach in the pattern and the undercurrent continues to
remain buoyant.
All and all, the Markets may see modestly negative opening
but the overall bias continues to remain positive. We may see improvement
coming in at any moment as we go ahead in the session. It is strongly advised
to avoid creating short positions. Selective purchases may be continued to be
made. Overall, continuance of cautiously positive outlook is advised for today.
Milan
Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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