MARKET REPORT December
26, 2013
After remaining flat for the most part of the session the
Markets slipped in to the red in the second half of the session to end the day
with nominal losses. The Markets opened on a modestly positive note while it
gave its day’s high of 6301.50 in the early minutes of the trade. Thereafter,
the Markets spent the first half of the session trading in extremely narrow
range without any directional consensus. However, the second half of the
Markets saw it dipping into the red as it went on to give the day’s low of
6262. The Markets again spent the rest of the session in a very narrow range
and ended the day at 6268.40, posting a minor loss of 16.10 points or 0.26%
while forming a lower top and lower bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Yesterday was a trading holiday on account of Christmas.
Today, the Markets will wake up from the slumber on a very flat and lousy note
and look for directions. Expect the Markets to open on a very flat note and
trade in a capped range in the initial session. Today is the expiry day for the
current derivative series and the session certainly remain dominated with
rollover centric activities.
Today, the levels of 6310 and 6335 would act as resistance
on the upside whereas the levels of 6225 and 6205 are expected to act as
immediate supports.
The RSI—Relative Strength Index on the Daily Chart is
55.7239 and it is neutral as it shows no bullish or bearish divergence or failure
swings. The Daily MACD is bullish as today it has reported a positive crossover
as expected in the previous edition of our Daily Market Trend Guide and it now
trades above its signal line.
On the derivative front, rollovers continued as the NIFTY
January futures went on to add 27.09 lakh shares or over 20.47% in Open
Interest.
Going back to pattern analysis, the Markets are pretty much
structurally sound as we have often mentioned this our previous editions of
Daily Market Trend Guide as it continues to trade above all of its Daily Moving
Averages. Even if the rollover activities exert some pressure on the Markets,
it is likely to remain very temporary in nature so long as it trades above its
50-DMA levels.
All and all, today as well, even if we see a flat and drowsy
opening, the session may see some volatility on account of rollovers. This can
even make a range bound markets appear little volatile. We continue to advice
you to strictly avoid short while continue to make selective purchases with any
available downside while protecting existing profits. Overall, continuation of
positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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