Daily Market Trend Guide -- Friday, November 13, 2015

MARKET REPORT                                                                              November 13, 2015

The Markets session on the Muhurat Trading remained typically as like any other muhurat session as the Markets opened higher, remained in a capped and narrow range but ended the day quite on a good positive note. The Markets saw a relatively stronger opening and formed its intraday high of 7847.95 in the early minute of the hour-long session. Soon after that, the Markets gradually kept paring gains but overall continued to maintain its gains. It spent the hour-long session in a relatively capped and narrow range. After spending the short session in 25-odd points range, the Markets finally settled the day at 7825, posting a net gain of 41.65 points or 0.54% while forming a lower top but higher bottom on the Daily Bar Charts.

MARKET TREND FOR FRIDAY, NOVEMBER 13, 2015

Markets are not completely out of the woods but the oversold nature of the Markets saw some positive upticks on expected lines on Wednesday. However, today, we are once again likely to see a negative opening in the Markets. However, the fact that any negative opening in the Markets will once again make the Markets oversold, the analysis continues to remain more or less on similar lines. This translates into possibilities of the Markets recovering once gain after a negative opening.

For today, the levels of 7850 and 7890 will act as immediate resistance levels for the Markets. Supports come in at 7775 and 7730 levels.

The RSI—Relative Strength Index on the Daily Chart is 33.1378 and it is neutral as it shows no bullish or bearish divergence or any failure swing. The Daily MACD continues to remain bearish as it trades below its signal line.

On the derivative front, the hour-long session on Wednesday, the NIFTY November futures have shed over 1.04 lakh shares or 0.59% in Open Interest. This shows continuation of some offloading and unwinding of positions in the Markets.

Having a look at pattern analysis, the Markets attempted to form some base near the levels of 7775. However, given the structure of the Charts, any continuing weakness will see the Markets testing its support levels of 7680 levels in the immediate short term. Again, it is important to note that the Markets will once again get nearly oversold any downsides at close levels. This will ensure that the Markets see little and limited downsides and does not make any significant breach on the Daily Charts.

Overall, with the lower opening expected, the Markets are once again set to test its immediate support levels. However, taking a combined look at the technical structure of the Market, its lead indicators and the F&O data, the chances remain that post negative opening; it will either attempt to recover as the day progresses or will keep its downsides limited. It is advised to keep exposures limited and maintain liquidity while adopting a cautious outlook on the Markets.

Milan Vaishnav,
Consulting Technical Analyst

Af. Member: Market Technicians Association, (MTA), USA
Af. Member: Association of Technical Market Analysts, (ATMA), INDIA
www.EquityResearch.asia
http://milan-vaishnav.blogspot.com

+91-98250-16331
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