MARKET REPORT January
14, 2014
The Markets saw a hefty surge backed by banking and IT among
other oil and gas stocks as it opened higher, became stronger in the last hour
of trade and ended the day with hefty gains supported by heavy FII buying. The
Markets opened on a stronger than expected note and spent the most part of the
session maintaining those gains and trading comfortably above the 50-DMA. The
Markets grew even stronger in the last hour of the trade as it went on to give
the day’s high of 6288.20. Markets sustained these gains as well and finally
ended the day at 6272.75, posting a robust and hefty gain of 101.30 points or
1.64% while forming a distinctly higher top and higher bottom on the Daily High
Low Charts.
MARKET TREND FOR TODAY
Today, we might again see a subdued opening today as the
Markets are expected to open on a flat to mildly quiet note and look for
directions again. The Markets have given buoyant indicators after yesterday’s
rise and after some consolidation again, the overall undercurrent still remains
distinctly bullish.
For today, the levels of 6310 and 6345 are immediate
resistance on the Daily Charts. The support exist at 6192, which is the 50-DMA
at Close levels.
The RSI—Relative Strength Index on the Daily Chart is
56.2132 and it remains neutral as it shows no bullish or bearish divergence or
any failure swings. The Daily MACD, though it still continues to trade below is
signal line might attempt positive crossover in coming days.
On the derivative front, the NIFTY January futures have
added over 5.28 lakh shares or 3.10% in Open Interest. This is certainly
positive as we can clearly interpret that the rise that we saw yesterday is not
just on account of short covering. Fresh longs have been seen added across
NIFTY and stock futures.
Overall, the Markets have attempted a breakout and after
attempting support at its 50-DMA for couple of times in last fortnight. The Markets
have managed to successfully hold on to that support and has attempted a
reversal with the yesterday’s up move.
Even if the Markets consolidates at these levels, it is certainly likely to
keep its head above the critical supports and prepare for further continuation
of the up move in coming sessions.
The Markets will give reactions to WPI and CPI inflation
data coming tomorrow, which is expected to be better and lower. Overall, given
the structure on the Daily Charts, the Markets may again see brief
consolidation with a positive bias. In even of some range bound movement,
selective purchases may be continued to be made. Overall, positive outlook is
advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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