MARKET REPORT January
23, 2014
After spending the day in a very range bound session, the
Markets inched up in the last hour of the trade in an attempt to move past its
52-week high as it ended the day with modest gains. The Markets opened on a
marginally lower note and made its intraday low of 6287.45 in the very early
minutes of the trade. However, after this, the Markets slowly crawled back to
the positive territory after a recovery from the morning lows. Thereafter, the
Markets spent almost entire session in sideways trajectory and it was only in
last hour of the trade the Markets attempted to inch upwards. It went on to
form the day’s high of 6349.95. After retracing a bit from those levels, it
finally ended the day at 6338.95, posting a modest gain of 25.15 points or
0.40% while forming a higher top but lower bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
The levels of 6350 has continued to act as resistance as the
Markets retraced after forming the day’s high of 6349.95. Today as well, expect
the Markets to open on a quiet note again and look for directions. The intraday
trajectory would be important to decide the trend for today and the behaviour of
the Markets vis-a-vis the levels of 6350 would be crucial to watch for.
The levels of 6350 and 6385 would act as immediate resistance
levels for today. The supports exist at 6280 and 6255 levels.
The lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Chart is 59.68.31 and it has reached its highest
value in last 14-days which is bullish. It does not show any bullish or bearish
divergence as such. The Daily MACD continues to remain bullish as it trades
above its signal line.
On the derivative front, NIFTY January futures have shed
over 1.44 lakh shares or 0.82% in Open Interest. This shows that minor short
covering was seen in the last hour of the trade. It would be important to see
that, given the expiry a week away, this translates into fresh long positions
being built up.
Going by the pattern analysis once again, the overall
analysis remains on similar lines. The Markets will have to move past the
levels of 6350 for a sustainable up move shall occur. Until this happens, we
would see the Markets remaining in a broad trading range with the levels of
6200 acting as its major base and
support. However, along with moving past the 6350 levels, it would be equally
important to see that this happens with volumes and good amount of
participation.
All and all, we would see the Markets attempting to take a
definite direction once again today while opening on a quiet note. Sectoral out
performance would continue and therefore it is advised to continue with a very
specific and selective approach. While protecting profits, if any, at higher
levels, overall positive caution is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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