MARKET REPORT
July 23, 2013
The Markets had a consolidating session, much like Friday as
it remained in positive territory but struggled to maintain intraday gains to
end the day on a flat note. The Markets opened on a modestly negative note gave
its intraday low of 6004.25 in the early minutes of the trade. The Markets soon
crawled back into the positive territory and kept adding to its gains in a
steady manner. During the afternoon trade, it went on to record the day’s high
of 6064.15. However, the Markets failed to sustain its gains as it came of from
those levels. It steadily gave up gains to trade flat again. The Markets
hovered around its previous close levels and finally ended the day at 6031.80
posting a nominal gain of 2.60 points or 0.04% while forming a slightly higher
top and lower bottom on the Daily High Low charts.
MARKET TREND FOR TODAY
The Markets have been consolidating during last two
sessions. This consolidation has been a positive one and yesterday, even the
Weekly Charts suggested that we might see some up move in the immediate short
term. Today, expect the Markets to open on a positive note and look for
directions. The opening would be expected above its consolidation levels and it
would be important for the Markets to sustain opening gains in order to have
further up move.
For today, the levels of 6065 and 6135 would act as
immediate resistance on the Charts. The supports come in at 5975 and 5950
levels.
The lead indicators continue to remain perfectly in place.
The RSI—Relative Strength Index on the Daily Charts is 59.8473 and it is
neutral as it shows no bullish or bearish divergence or failure swings. The
Daily MACD continues to remain bullish as it trades above its signal line.
On the derivative front, the NIFTY Futures have continued to
add in total open interest. So has the stock futures which too have reported
addition in net open interest.
Overall, the lead indicators and the patterns on the Charts
continue to remain in place. The levels of 6060 have been in intermediate
resistance (consolidation upper limit) and today’s opening would be around or
above this levels. It would be important for the Markets to capitalize on the
positive opening and this would take the Markets in the 6100-6130 zone which
will have a pattern resistance in form of a Double Top.
All and all, all factors set to give markets a positive
opening. The sustenance of this positive opening would be critically important
and the intraday trajectory that the Markets form would be critical. Selective
purchases should be continued to be made. Any dip, or any minor bout of profit
taking, if at all witnessed should be used to make selective purchases.
Overall, positive optimism is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
