MARKET REPORT March
10, 2014
The Markets had a huge surge in the Friday’s session as it
moved past its lifetime highs on intraday levels as well and ended the day on a
new life time high moving past all resistances as well. The Markets opened on a
positive note on Friday and spent the session in a one-way up move in form of
rising trajectory. After opening on a positive note, the Markets surged to move
past its previous lifetime high of 6415 levels. It continued to gain strength
and it kept making fresh intraday highs steadily during the session. It went on
to post the day’s high of 6537.80 during the end of the session. It maintained
those levels and finally ended the day at 6526.65, posting a very strong gain
of 125.50 points or 1.96% while posting a sharply higher top and higher bottom
on the Daily High Low Charts.
MARKET TREND FOR TODAY
As mentioned in our Friday’s edition of Daily Market Trend
Guide, there has been a huge breakout on the Daily Charts but at the same time,
the Markets have now moved into very “overbought” territory. Today, expect the
Markets to open on a quiet to modestly negative note and look for directions.
There are very bright chances that the Markets corrects a bit, or at least consolidates with the levels
of 6537 acting as its immediate top, given the fact that the Markets have seen
nearly 350-odd points rise and is now trading “overbought”.
Today, the levels of 6537 would act as immediate resistance
for the Markets. Supports exist at 6475 and 6440 levels.
The lead indicators show some signs of weariness in the
Markets. The RSI—Relative Strength Index on the Daily Chart is 74.6769 and it
now trades in “overbought” territory. However, it has reached its highest value
in last 14-days which is bullish. It does not show any bullish or bearish
divergence. The Daily MACD is bullish as it trades above its signal line.
On the derivative front, the NIFTY March futures have added
over 23.04 lakh shares or massive 14.58% in Open Interest and this shows heavy
buying was done in Friday’s session in the F&O space. Also heavy delivery
based buying was seen in Cash segment as well.
Going by the Pattern Analysis, the Markets have achieved a
fresh breakout on the Daily Charts and has given a fresh buy signal but at the
same time, it has now entered the “overbought” territory. This means that while
keeping the original trend intact, there are bright chances that we see some
consolidation or mild correction from higher levels.
All and all, there are bright chances that we see some
profit taking or mild correction from higher levels with the Markets slated to
open modestly lower. However, it is very important to note that the way we
advice against blind and reckless buying, shorts too should be very strictly
avoided because the original trend remains intact. Profits should be protected
at higher levels very vigilantly and any downside / consolidation should be
used to make selective purchases. Overall, controlled and selective exposure in
the Markets 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.