Daily Market Trend Guide -- Wednesday, November 11, 2015

MARKET REPORT                                                                                     November 11, 2015

Ahead of the Muhurat Trading session today, the Markets thoroughly disappointed as bearish undertone continued to weigh heavy on the Markets as it ended the fifth day in a row with losses. The Markets saw a negative opening but this negative opening was modest in the beginning as the Markets traded with modest losses in the morning session as it formed its intraday high of 7885.10 in the very early minutes of the trade. Thereafter, the Markets traded with capped losses, more in the sideways trajectory in the first half of the session. In the second half the Markets saw some more weakness creeping in and it got intensified in the last hour of the trade. The last hour saw a sharp paring of gains as the Markets formed its intraday low of 7772.85. It finally settled the day at 7783.35, posting a net loss of 131.85 points or 1.67% while forming a lower top and lower bottom on the Daily Bar Charts.

Muhurat Trading Session Timings : November 11, 2015, 17:45 Hrs to 18:45 Hrs.

MARKET TREND FOR WEDNESDAY, NOVEMBER 11, 2015

Markets shall conduct a small “Muhurat” trading session from 17:45 hrs to 18:45 Hrs and such sessions remain typically symbolic in nature. We may expect a flat opening and also see the Markets trading in a subdued and capped range for a one hour long session today. The Markets are now “oversold” and we may see some positive ticks today. However, no major movements are expected in today’s session.

The levels of 7810 and 7840 are immediate resistance levels for the Markets. The supports come in at 7760 and 7710 levels.

The RSI—Relative Strength Index on the Daily Chart is 28.7980 and it has reached its lowest value in last 14-days which is bearish. It is now trading in “oversold” territory and it also does not show any bullish or bearish divergence. The Daily MACD remains bearish as it continues to trade below its signal line.

On the derivative front, the NIFTY November futures have shed 1.95 lakh shares or 1.09% in Open Interest. Given these figures, it is evident that unwinding of positions continued.

Coming to pattern analysis, the Markets have closed near the lowest point of the day. Given this fact, speaking purely on technical terms, Markets may see some weakness persisting for some more time. At the same time, given the oversold nature of the Markets, some positive ticks cannot be ruled out. Due to fragmented week, with today just being a one-hour session followed by holiday tomorrow, and just one working day before a weekend, the volumes are likely to remain typically lower.

Overall, given this fact, we may see subdued, range bound Market session for today. Volumes are set to be lower and may not see the Markets heading decisively in either direction. Given the oversold nature of the Markets, some technical rebound in near term can be expected. Selective and moderate purchases may be made for today while maintaining a cautious outlook for 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
milan.vaishnav@equityresearch.asia
milanvaishnav@yahoo.com