MARKET REPORT January
16, 2014
The Markets after consolidating for a day, resumed its up
move much on expected lines as the WPI inflation fell to 5 month low at 6.16%.
The Markets opened positive, strengthened further and ended the day with decent
gains. The Markets opened on a positive note and traded with modest gains until
late morning trade. Markets saw some spikes while it reacted to the numbers
coming in and also saw itself coming off its intraday highs. However, the
Markets saw it steadily strengthening itself and in the late afternoon trade, went
on to give the day’s high of 6325.20. It maintained those levels until the end
of the session and finally ended the day at 6320.90, posting a decent gain of
79.05 points or 1.27% while forming a higher top and higher bottom on the Daily
High Low Charts.
MARKET TREND FOR TODAY
Today, we can expect the Markets to open on a flat to mildly
positive note and continue with its up move, at least in the initial trade. The
Markets are expected to inch upwards and are likely to test the minor double
top formation ahead. The undercurrent continues to remain buoyant and we will
see continuation of the up move as such.
For today, the levels of 6360 and 6385 are likely to act as immediate
resistance on the upper side. The supports would exist at 6285 and 6250 levels.
The RSI—Relative Strength Index on the Daily Charts is
59.6067 and it has reached its highest value in last 14-days which is bullish.
The Daily MACD, as we had reported in our
yesterday’s edition, has reported a positive crossover and it is bullish
as it now trades above its signal line.
On the derivative front, NIFTY January futures have added
over 4.60 lakh shares or 2.59% in Open
Interest. This signifies that the Markets have continued to see building of
fresh positions and no short covering or any kind of unwinding has been
witnessed.
The overall structure and the patterns on the Daily Charts
continue to remain intact. The Markets have resumed its up move after
critically maintaining the supports of its 50-DMA at the close levels. The Markets
shall achieve a fresh breakout once again, taking it to newer heights once its
moves past the levels of 6360 with volumes and stays above that.
Overall, with the overall structure remaining stable, the
undercurrent and tone of the Markets certainly remains stable and buoyant. It
is advised to continue to make selective purchases and any downside or any brief
consolidation should be used to make purchases while protecting profits at
higher levels. Continuance of positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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