Daily Technical Market Report for October 26, 2009 - Afternoon Newspaper
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Oct 26, 2009, 12:35:45 AM10/26/09
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Daily Technical Market Report for October 26, 2009 - Afternoon Newspaper
NSE India : S&P CNX Nifty
The Afternoon Newspaper : Daily Market Report for: Monday (October 26, 2009)
(Based on the activity of the previous trading session)
By Dominic Rebello
Review of the Previous day: The Nifty rose marginally on Friday (October 23, 2009) a net 8.45 points (0.17%) and closed at 4997 point level. The market opened up and touched a high at the 5054 points level. It then turned down and continued so until 03:05 p.m. when it reached its day low at 4983 points. Then it turned into a range bound movement until closing at the day. The market moved in a range of 72 points. Sentiment was mixed and amongst the 50 Nifty stocks, 28 were gainers and 22 were losers. Buying was witnessed in banking, technology, FMCG, select power and metal stocks, while selling was witnessed in telecom and capital goods stocks.
Technical Analysis:
Volume: (Qty shares) decreased 5.44%. This change is small and indicates a moderate participation by investors.
Market Breadth: Overall Market Breadth on the NSE was positive. Amongst all the traded stocks, 664 were gainers, 602 were losers and 39 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator is in the neutral zone. The Slow K line in the Stochastic Oscillator is below the slow D line (negative if it continues).
RSI Indicator: The RSI is above the 40 level and is now rising (positive if it continues).
MACD Indicator: The MACD is above zero but is declining (negative if it continues). It is below its 9-day Average (negative).
ADX Indicator & DI Lines: The +DI line is below the –DI line but both lines are converging (positive if it continues). The ADX is falling while the Market Index is flat. No signal here.
Moving Averages (Trend Indicators)
The index:
Is below its 5-day average (at 5061) Negative.
Is below its 15-day average (at 5051) Negative.
Is below its 25-day average (at 5023) Negative.
Is above its 200-day average (at 3891) Positive.
All the four averages are positively trended. Positive.
Overall Market Strength/Weakness: The indicators and oscillators discussed here are indicating a weak market but with a neutral bias.
Support Levels: For short-term traders the immediate main support is at 4672 marked as S1 (blue line below the Index). The next support is at 4394 marked as S2 (blue line below the Index).
Resistance Levels: The immediate main resistance is at 5193 marked as R1 (red line above the Index). The next resistance is at 5580 marked as R2 (red line above the Index).
Pivot Point Analysis: For intra-day traders the support and resistance levels are calculated according to the pivot point theory and are:
Pivot point = 5012 (This is the level where the trend is likely to change during intra-day).
Support (1) = 4969.
Support (2) = 4940.
Resistance (1) = 5040.
Resistance (2) = 5083.
(For support and resistance levels of all F&O scrips refer to today's Afternoon Newspaper)
Outlook for Today: On Japanese candlestick patterns the index after having formed three consecutive black body candles has formed a small white body candle with a long upper tail. A long upper tail indicates that the Bulls controlled part of the session but lost control by the end and the Bears made an impressive comeback. As such it indicates that the index was facing selling pressure at higher levels. This candle also indicates indecisiveness amongst market men. The next candle formation will confirm whether the bias is towards the buy or sell side of the market.
However, the index is below its 5, 15 and 25 day’s moving averages. Further, the velocity parameters are also negatively trended. Both these indicate a negative bias and the possibility of a further decline unfolding.
Investors are advised to avoid buying at current levels.
Work with strict stop losses on all positions.
NSE India : S&P CNX Nifty
The Afternoon Newspaper : Daily Market Report for: Monday (October 26, 2009)
(Based on the activity of the previous trading session)
By Dominic Rebello
Review of the Previous day: The Nifty rose marginally on Friday (October 23, 2009) a net 8.45 points (0.17%) and closed at 4997 point level. The market opened up and touched a high at the 5054 points level. It then turned down and continued so until 03:05 p.m. when it reached its day low at 4983 points. Then it turned into a range bound movement until closing at the day. The market moved in a range of 72 points. Sentiment was mixed and amongst the 50 Nifty stocks, 28 were gainers and 22 were losers. Buying was witnessed in banking, technology, FMCG, select power and metal stocks, while selling was witnessed in telecom and capital goods stocks.
Technical Analysis:
Volume: (Qty shares) decreased 5.44%. This change is small and indicates a moderate participation by investors.
Market Breadth: Overall Market Breadth on the NSE was positive. Amongst all the traded stocks, 664 were gainers, 602 were losers and 39 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator is in the neutral zone. The Slow K line in the Stochastic Oscillator is below the slow D line (negative if it continues).
RSI Indicator: The RSI is above the 40 level and is now rising (positive if it continues).
MACD Indicator: The MACD is above zero but is declining (negative if it continues). It is below its 9-day Average (negative).
ADX Indicator & DI Lines: The +DI line is below the –DI line but both lines are converging (positive if it continues). The ADX is falling while the Market Index is flat. No signal here.
Moving Averages (Trend Indicators)
The index:
Is below its 5-day average (at 5061) Negative.
Is below its 15-day average (at 5051) Negative.
Is below its 25-day average (at 5023) Negative.
Is above its 200-day average (at 3891) Positive.
All the four averages are positively trended. Positive.
Overall Market Strength/Weakness: The indicators and oscillators discussed here are indicating a weak market but with a neutral bias.
Support Levels: For short-term traders the immediate main support is at 4672 marked as S1 (blue line below the Index). The next support is at 4394 marked as S2 (blue line below the Index).
Resistance Levels: The immediate main resistance is at 5193 marked as R1 (red line above the Index). The next resistance is at 5580 marked as R2 (red line above the Index).
Pivot Point Analysis: For intra-day traders the support and resistance levels are calculated according to the pivot point theory and are:
Pivot point = 5012 (This is the level where the trend is likely to change during intra-day).
Support (1) = 4969.
Support (2) = 4940.
Resistance (1) = 5040.
Resistance (2) = 5083.
(For support and resistance levels of all F&O scrips refer to today's Afternoon Newspaper)
Outlook for Today: On Japanese candlestick patterns the index after having formed three consecutive black body candles has formed a small white body candle with a long upper tail. A long upper tail indicates that the Bulls controlled part of the session but lost control by the end and the Bears made an impressive comeback. As such it indicates that the index was facing selling pressure at higher levels. This candle also indicates indecisiveness amongst market men. The next candle formation will confirm whether the bias is towards the buy or sell side of the market.
However, the index is below its 5, 15 and 25 day’s moving averages. Further, the velocity parameters are also negatively trended. Both these indicate a negative bias and the possibility of a further decline unfolding.
Investors are advised to avoid buying at current levels.
Work with strict stop losses on all positions.
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