MARKET REPORT February
12, 2014
The Markets continued to have a range bound session wherein
it continued to consolidate for the third day in a row while ending the day
with minor gains. The Markets opened on a positive note on expected line and in
the early minutes of the trade, pared some of its gains to trade flat. The
Markets saw some strength coming in the morning trade as it gradually inched
upwards to give the day’s high of 6081.85. The seconde half of the day saw the
Markets paring these gains again to trade on a flat note. The Markets spent the
second half of the session while trading in a extremely capped range. It
finally ended the day at 6062.70, posting a minor gain of 9.25 points or 0.15%
while forming a similar top and slightly higher bottom on the Daily High Low
Charts.
MARKET TREND FOR TODAY
After pulling back from its lows of 5933 levels, the Markets
have spent the last three sessions while consolidating in a much capped range.
Today, we can expect the Markets to open on a decently positive note and
continue with its up move. However, as outlined in our previous editions of
Daily Market Trend Guide, it would be important for the Markets to maintain
these opening gains and capitalize on it. With December IIP data and January
CPI data coming in after Market hours, the Markets are again set to spend the
day in a range.
For today, the levels of 6090 and 6145 are immediate
resistance levels on the Charts. The supports come in much lower at 6025 and
5980 levels.
The lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Chart is 40.3487 and it continues to remain neutral
without showing any failure swings or any kind of bullish or bearish
divergences. T he Daily MACD trades below its signal line.
On the derivative front, the NIFTY February futures have
added over 4.80 lakh shares or 3.11% in Open Interest. This shows that some
fresh positions have been added in yesterday’s trade and the Markets are likely
to continue with its up move, at least in the initial session.
As mentioned above, the Markets have been consolidating for
last three sessions after its pullback. Going by the pattern analysis, the
Markets are likely to inch upwards towards its 100-DMA levels and again face
some resistance and consolidation. It would confirm its trend reversal only
after it moves past its 100-DMA with volumes and good amount of participation.
All and all, it is continued to advise to keep avoiding aggressive
positions in the Markets. Heavy
exposures should be avoided. Any rise should be used to book profits wherever it exists and making
highly selective purchases. Both profits and amount of exposures should be
heavily guarded until the directional bias is clearly established. Overall,
continuance of positive caution is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
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