MARKET REPORT February
03, 2014
The Markets had an consolidating session on Friday as it
halted its 5-day losing streak and ended the day with modest gains, though it
spent the entire session with low volumes in a 20-odd point range, heading nowhere.
The Markets opened on a flat note and soon formed its intraday high of 6097.85
in morning session. Thereafter, after forming this day’s high, the Markets soon
pared these gains in the early afternoon trade to trade flat. This phenomenon
continued for the entire session as the Markets made a very modest recover
until the end of the session to pare it again. It again recovered, while
continuing to remain in a capped 20-odd points range and finally ended the day
at 6089.50, posting a modest gain of 15.80 points or 0.26% while forming a
higher top and higher bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Expect the Markets to open on a modestly negative note again
and look for directions. The consolidation in the Markets is likely to continue
and the intraday trajectory that the Markets forms after opening would be crucial
to decide the trend. The Markets will need up move with good volume
participation to reverse its trend.
For today, the levels of 6100 and 6130 would act as
immediate resistance on the Daily Charts. The levels of 6060 and 6035 would act
as supports.
The RSI—Relative Strength Index on the Daily Chart is
37.4722 and it is neutral as it shows no bullish or bearish divergence or any
kind of failure swings. The Daily MACD continues to remain bullish as it trades
below its signal line. On the Weekly Charts, the RSI is 50.4384 and it has
reached its lowest value in last 14-periods. The Weekly RSI has set a new low
but NIFTY has not yet, and this is a minor bearish divergence on the Weekly
Charts. The Weekly MACD remains bearish as it trades below its signal line.
On the derivative front, NIFTY February futures have added
over 2.72 lakh shares or 1.71% in Open Interest. This signifies that the
Markets have not seen any selling in the consolidating session that it
witnessed on Friday.
Going by overall pattern analysis, the Markets are ruling
below its 100-dma levels. For the Markets to attempt to find a bottom
successfully, the Markets will have to move past the levels of 100-dma and
while doing so, it will have to do it with good participation and volumes.
Until this happens, we are likely to see the Markets continue to see some
pressure and continue to trend with a downward bias. However, while the Markets
consolidate, we are likely to see the volumes continue to remain on the lower
levels.
All and all, the Markets still have not found the bottom
successfully, though on Friday, it has attempted to do so. The Markets are likely
to continue to see pressured movements in a given range until it moves past it
100-dma. Until this happens, we would continue to see direction-less movement
and range bound trades in the Markets. We continue to advice to refrain from
taking aggressive long positions. Liquidity should be maintained and profits
should be protected at any levels. Cautious optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.