MARKET REPORT December
10, 2013
Markets gave a euphoric reaction to the assembly elections
outcome and continue with its up move by opening on a stronger note and
maintaining those gains through out the day. The Markets saw a gap up opening
yesterday and saw the intraday high levels of 6415 in the initial seconds of
the trade. However, post these opening levels, the Markets came of from its
highs but spent the rest of the session in sideways trajectory while
maintaining most of its gains. The remaining session saw the Markets trading in
a 25-odd points range and spent the rest of the session in this manner. It
finally ended the day at 6363.90, posting a net gain of 104 points or 1.66%
while forming a sharply higher top and higher bottom on the Daily High Low
Charts.
MARKET TREND FOR TODAY
After forming and closing at new highs, today, we can expect
to see a mildly positive opening once again and we will see the markets opening
on a mildly positive note and continuing with its up move. However, the levels
of 6415 has no become a immediate top for the Markets and we cannot rule out
the possibility of Markets consolidating around these levels while this acts as
an immediate top and a resistance.
For today, the levels of 6415 and 6440 would act as
immediate resistance levels for the Markets. The supports exist at 6300 and
6275 levels.
The RSI—Relative Strength Index on the Daily Chart is 65.09
and it has reached its highest value in last 14-days which is bullish. It does
not show any bullish or bearish divergence. The Daily MACD continues to remain
bullish as it trades above its signal line.
On the derivative front, NIFTY December futures have gone on
to add a massive 20.54 lakh shares or 10.53% in Open Interest. This indicates
that fresh longs were created and no major profit booking was witnessed from
all time highs.
Given all this, it is clear that undercurrent continues to
remain intact. However, since the Markets have retraced from the 6415 levels,
we might see some consolidation happening near these levels.
All and all, we should see a mildly positive opening today
and see a range bound trade happening. Though it would be now important to
guard profits at higher levels, selective purchases may still be made with any
retracements. Shorts should be strictly avoided. Defensives should out perform
if the Markets consolidate. Overall continuance of positive outlook is advised
for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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