MARKET REPORT December
17, 2013
The Markets traded more or less on expected lines yesterday
as it consolidated and spent the session in a narrow range and ended the day
with minor losses. The Markets opened on a mildly negative note but soon
crawled into the positive territory and gave its intraday high of 6183.25 in
the morning session. It however did not sustain those nominal gains and slipped
back to trade flat. After spending some time in extremely capped range, the
Markets slightly slipped into the red in the afternoon session to give its day’s
low of 6146.05. This was against the mentioned support of 6141 in form of its
50-DMA. The Markets pulled back a bit from those levels and finally ended the
day at 6154.70, posting a minor loss of 13.70 points or 0.22% while continuing
to form a lower top and lower bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
The Markets have took support near its 50-DMA on expected
lines and that support has held on as of today. Today, we can expect the
Markets to open on a positive stronger note and continue with its up move, at
least in the initial trade. It would be equally critical for the Markets to
sustain the opening levels and in any case of downside the 50-DMA still continue
to hold as important support.
For today, the levels of 6195 and 6230 would act as
immediate resistance on the Charts. The supports exist at 50-DMA at 6145 and
further down at 6110 levels.
Even after decline of five days in a row, the lead indicators
continue to remain in place. The RSI—Relative Strength Index on the Daily Chart
is 48.3087 and it continues to remain neutral as it shows no bullish or bearish
divergences or any kind of failure swings. The Daily MACD however has reported
a negative crossover and it now trades below its signal line. This is
expected to reverse again if the Markets
sustains its opening gains and capitalizes on its stronger opening.
On the derivative front, the NIFTY December futures have
added 4.56 lakh shares or 2.07% in Open Interest. This is a positive sign
showing addition of fresh positions yesterday.
If we go by the pattern analysis, there is no negative
breach on the technical charts. The Markets have held on to its support of
50-DMA at Close levels and currently trades above all of its moving averages. The
lead indicators show a very minor immediate weakness but that should be taken
care of if the Markets attempt a pullback. The derivative figures show good
amount of Open Interest addition in last five sessions indicating more likelihood
of the Markets taking support at these current levels.
All and all, there are chances that the Markets see a
positive and stronger opening today and importantly sustain them. Though the
intraday trajectory would continue to remain very important, any minor declines
should be continued to be used for making fresh purchases. Shorts should be
strictly avoided. Overall, positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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