MARKET REPORT December
05, 2013
After spending the most part of the session in a narrow
15-odd point range, the Markets extended its losses in the second half and
ended the day with modest losses. The Markets opened on a modestly negative
note and spent the first half of the session with capped losses. The Markets
went very briefly in the positive territory as it gave intraday high of
6209.15. However it came back into negative territory again and extended its
losses in the second half of the session. It went on to give the day’s low of 6149.90
in the last hour of the trade. It saw a modest recovery from there and finally
ended the day at 6160.95, posting a net loss of 40.90 points or 0.66% while
forming a lower top and lower bottom on the Daily High Low charts.
MARKET TREND FOR TODAY
The Markets are expected to see a stronger opening today on
back of positive global cues. Today, expected the Markets to open on a stronger
note and look for directions. It would be critically important to see if the
Markets sustain the opening gains and capitalize on it. For this, the intraday
trajectory that the Markets form would be critically important as well.
Today, the levels of 6210 and 6235 would act as immediate
resistance levels. The levels of 6140
and 6110 are immediate supports on Daily Charts.
The lead indicators continue to remain firmly in place. The RSI—Relative Strength Index on the Daily
Chart is 53.35 and it continues to remain neutral as it shows no bullish or
bearish divergences or any kind of failure swings. The Daily MACD continues to
remain in buy mode and bullish as it trades above its signal line.
On the derivative front, NIFTY December futures have shed
6.47 lakh shares or 3.45% in open interest. This is a factor of little concern
as it shows some profit booking from higher levels. It would be very important
to see that the Markets add OI in stocks as well as indices and we see fresh
long positions being taken.
If we look at the pattern analysis, there is absolutely
nothing wrong and the Markets have just consolidated or corrected on minor
levels in last two days. The Daily MACD has reported a positive crossover 2
days back and this is a lead indicator indicating impending up move in the
Markets. Today we would see a positive opening and therefore, it would be very
necessary for the Markets to sustain and capitalize on such positive opening.
All and all, stronger opening is expected but at the same
time, equal importance is place on sustenance of this gains. Intraday trajectory would be
critically important for the Markets to capitalize on such opening. It is
advised to continue to refrain from shorts and also protect profits vigilantly
at higher levels. Any temporary slide should be utilized to make selective
purchases. Continuance of positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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