MARKET REPORT January
01, 2014
The Markets had it session yesterday in a quiet year-end
mood as it remained in a very capped range on expected lines and ended the day
with minor gains. The Markets opened on a positive note but soon drifted to the
lows of the day as it dipped into the negative for a very brief period while
recording its intraday low of 6287.30. However, it recovered those gains again
in a very short time and traded back into the green. It gradually inched up to
give its intraday high in the late morning trade at 6317.30. However, after
this, the Markets spent its session in a absolutely quiet and range bound
manner. It finally ended the day at 6304, posting a minor gain of 12.90 points
or 0.21% while forming a lower top but higher bottom on the Daily High Low
Charts.
MARKET TREND FOR TODAY
Today, expect the Markets to usher in a new year on a quiet
and positive note and look for directions. The analysis would remain more or
less similar again as we would continue to see lower volumes and also some
stock specific activities. The session is largely expected to remain capped and
the levels of 6344 would continue to act as immediate resistance for today.
Today, the levels of 6344 and 6370 would act as resistance on
the charts whereas the supports are expected lower at 6275 and 6230 levels.
The lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Chart is 57.6309 and it continues to remain neutral
showing no bullish or bearish divergences or any failure swings. The Daily MACD
remains bullish as it continues to trade above its signal line.
On the derivative front, NIFTY January futures have
continued to act over 4.94 lakh shares or 2.57% in Open Interest. This is a
positive reading as this shows that fresh longs were added yesterday even in a
capped and range bound markets and offloading was seen.
Overall, the reading here again remains the same as the
Markets continues to trade above all of its DMAs and sees no structural
weakness on the Charts so long as it continues to trade above its 50-DMA.
However the levels of 6344 would continue to act as immediate resistance and
the Markets will have to move past this levels for a sustainable up move.
All and all, the reading signifies that for a momentum to
catch up and sustain, the levels of 6344 are required to be breached on the
upside. In case of any weakness, the markets will have to trade above the
levels of 50-DMA. In the present case, until the Markets moves past the levels
of 6344, it is likely to continue to see range bound movements. However ,it is
advised to strictly refrain from shorts and use such consolidation for making
stock specific purchases. Overall, positive outlook is continued to be advised
for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
