MARKET REPORT December
04, 2013
The Markets consolidated yesterday on expected lines as it
opened on a modestly negative note and spent the entire session in a narrow
25-odd points range and ended the day
with minor losses. The Markets traded in a narrow band after opening on
a modestly negative note. In the morning trade, after trading briefly in the
negative, the markets moved in the positive territory for a brief time as it
gave its intraday high of 6225.40. This remained for a very brief while as the
Markets again moved back in the negative and then remained negative for the
rest of the session. The Markets went on to give the day’s low of 6191.40.
However, it recovered from those levels as well and ended the day at 6201.85,
posting a minor loss of 16 points or 0.26% while forming a similar top but
higher bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Today’s market analysis remains more or less on similar
lines as that of yesterday. Today, with all lead indicators in place, we would
again see the Markets opening on a modestly negative note and continuing with
consolidation. However, it is likely to do so with a positive bias and we would
see the Markets trading in a range once again.
Today, the levels of 6235 and 6250 would act as immediate
resistance on the Daily Charts. The supports exist at 6175 and 6160 levels.
The lead indicators continue to remain firmly in place. The
RSI—Relative Strength Index on the Daily Chart is 56.6240 and remains neutral
as it shows no bullish or bearish divergence or any kind of failure swing. The
Daily MACD continues to remain bullish as it trades above its signal line.
On the derivative front, the NIFTY December futures have
continued to add in net open interest signifying addition in long positions
across stocks and indices.
Going by this, it is very clear that the Markets are
undergoing some point of consolidation but this remains with a positive bias as
all lead indicators, pattern on the Chart remain firmly in place. The F&O
data too supports this. Under such circumstances it is very much likely that
the Markets opens modestly negative but remains firmly in place and improves as
we go ahead in the session.
All and all, such consolidation period is likely to keep the
markets in a narrow range. The intraday trajectory would be crucial but
consolidation is likely with a positive bias. It is advised to strictly refrain
from creating shorts as there is no structural weakness on the Charts.
Selective purchases can be made. Overall, continuation of positive outlook is advised
for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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