MARKET REPORT December
30, 2013
The Markets had a relatively stable session on Friday as it
opened positive and ended the day with decent gains while maintaining its
opening levels. The Markets saw the opening of the January series on a
relatively quiet note as it saw a modestly positive opening. After opening, the
Markets kept making gradual new highs, though in a capped range as it gave its
intraday high of 6324.90 in the early afternoon trade. The Markets never came
off from these levels much as it continued to spend the entire session in a
very narrow and capped range. The Markets saw the entire session in a sideways
trajectory. The entire session was spent in a 20-odd point trajectory as no
volatility was seen. It finally ended the day at 6313.80, posting a decent gain
of 34.90 points or 0.56% while forming a higher top and higher bottom on the
Daily High Low Charts.
MARKET TREND FOR TODAY
Today, we are likely to see the Markets opening on a flat to
mildly positive note and looking for directions again. The year end time after Christmas
is seeing very less participation and volumes in the Markets which is usual and
it would be like this today as well until next week. The Markets are likely to
maintain an overall positive bias while trading in a range.
The levels of 6335 and 6360 are likely to act as resistance
on the Daily Charts and the levels of 6275 and 6250 are likely to act as immediate
supports for the Markets.
The lead indicators continue to remain in place. The RSI—Relative
Strength Index on the Daily Charts is 58.8605 and it is neutral as it shows no
bullish or bearish divergence or any failure swings. The Daily MACD continues
to remain bullish as it trades above its signal line. On the Weekly Charts, the Weekly RSI is
neutral at 60.3229. The Weekly MACD too is bullish as it continues to trade
above its signal line.
On the derivative front, NIFTY January futures have added
over 7.86 lakh shares or 4.15% in Open Interest. This is a positive indication
and no unwinding of positions has been observed in the previous session.
Overall, the Markets continue to remain in positive
structure. It continues to trade above its all three DMAs and continued to
consolidate in previous session. On Friday it made an attempt to continue with
its up move and it would be important to see that the Markets continue with
their up move or if it consolidates. The intraday trajectory would continue to
remain important.
Overall, all lead indicators and the overall structure of
the Markets on technical chart remain perfectly in shape and intact. Any
downside or weakness if at all we see would be more of a consolidation and
would be temporary. Any such phase should be used to make selective purchases
while protecting profits at higher levels. While continuing to strictly avoid
shorts, positive outlook is advised for today.
Milan Vaishnav,
Consulting Technical Analyst,
+91-98250-16331
