MARKET REPORT December
27, 2013
The Markets had a relatively quiet and range bound recovery
session yesterday as it spent the day in a capped ranged and ended it with
minor gains. The Markets opened on a flat and modestly positive note and
literally spent the entire session in 20-odd points range moving nowhere. The
Markets traded in the most part of the day with lack of directional consensus.
However, in the last hour and half of trade, the Markets saw a sudden spurt as
it gave its day’s high of 6302.75 and saw equal sudden paring of those gains to
slip into negative for a very brief period. After giving day’s low of 6259.45,
it came back in to the green and ended the day at 6278.90, while forming a
parallel bar on the Daily High Low
Charts.
MARKET TREND FOR TODAY
Today, we can expect a equally quiet opening in the Markets
today. Today, the Markets are expected to open on a flat to mildly negative
note and look for directions. The trading in January series is likely to open
on a subdued note and the Markets can see lack of volumes due to current
year-end holidays. The Session is once again expected to remain range bound.
The session is likely to see the levels of 6310 and 6345 as
its immediate resistance and the levels of 6250 and 6210 are immediate supports
on the Daily Charts.
The lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Charts is 56.4490 and it is neutral as it shows no bullish
or bearish divergence or any kind of failure swings. The Daily MACD continues
with its positive crossover reported yesterday and it remains bullish as it
trades above its signal line.
On the derivative front, the NIFTY January series have continued
to add open interest. This signifies that there has been no major offloading at
all in any of the previous two sessions and the Markets have kept its
underlying trend intact so far.
Coming to pattern analysis, the Markets have continued to trade
comfortably above all of its DMAs. The overall conclusion remains similar to
that of our last few editions that the Markets have managed to keep the
underlying trend intact and has not yet shown any structural breach on the Daily Charts. This leads to the
similar conclusion that we have been mentioning in our previous editions that
the so long as the Markets keep its head above its 50-DMA, we will not see any significant
weakness creeping in.
All and all, today as well, we will expect the Markets to
remain range bound with the levels of 50-DMA acting as major support at the
Close levels. While continuing to avoid shorts, it is advised to continue to
use the downside / range bound consolidation to make selective purchases. Overall,
it is advised to continue to approach the day with cautious optimism.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
