MARKET REPORT February
11, 2014
The Markets had a direction-less session yesterday wherein
it spent the entire session heading nowhere in a 20-odd points range and ended
the day with marginal losses. The
Markets saw a modestly positive opening and formed its intraday high of 6083.05
in the very early minutes of the trade. However, post this opening, the Markets
pared its gains in the morning trade and traded flat. Then the entire session
was spent in a sideward trajectory in a very narrow range. The markets slipped
a bit more toward the end to form the day’s low of 6046.40. It finally ended
the day at 6053.45, posting a marginal loss of 9.75 points or 0.16% while
forming a similar top and slightly higher bottom on the Daily High Low Charts.
MARKET TREND FOR TODAY
Today, we are once again likely to see a positive opening.
The Markets are slated for a modestly positive opening and the analysis for
today would remain more or less similar to that of yesterday. It would be
necessary for the Markets to remain in positive trajectory failing which it is
likely to consolidate again like yesterday on similar lines. Volumes would
remain crucial for today as well.
For today, the levels of 6090 and 6140 would act as immediate
resistance on the Daily Charts. The supports exist at 6030 and 5975 levels.
The lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Chart is 39.0534 and it remains neutral without
showing any bullish or bearish divergences or failure swings. The Daily MACD
remains bearish as it trades below its signal line but it is moving towards reporting
a positive crossover.
On the derivative front, the NIFTY February futures have
added 41,650 shares or 0.27% in Open Interest. The Open Interest figures have
remained unchanged and this remains a positive sign which signifies that no
major offloading has been seen in yesterday’s session.
The Markets have attempted a trend reversal and it is
consolidating after its recent pullback from its 200-DMA. To further strengthen
this attempt of pullback, it will have to resume its up move and at lest test
its 100-DMA levels near 6150, and then move on to confirm the reversal of the
trend. During this entire process, the volumes would be very critical. Any up
move should be accompanied by volumes in order to sustain at higher levels.
All and all, like yesterday, stock specific actions would
continue. It is advised to continue to remain light on the positions at protect
profits wherever possible until the directional bias gets clear. Very selective
purchases may be made. Overall, 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.