Afternoon Newspaper : Daily Market Report for Friday (November 13, 2009)
Stratstar.com
By Dominic Rebello
Review of the Previous day: The Nifty fell substantially on Thursday
(November 12, 2009) a net 51.30 points (1.03%) and closed at 4952
point level. The market opened up then turned down and continued so
until 03:00 p.m. when it reached its day low at 4924 points. Then it
rose and turned into a range bound movement until closing at the day.
The market moved in a range of 90 points. Sentiment was bearish and
amongst the 50 Nifty stocks, 31 were losers, while 19 were gainers.
Heavy selling was witnessed in Banking and financial, metal, realty
and select power stocks, while buying was witnessed in Technology,
capital goods, cement and select telecom stocks.
Technical Analysis:
Volume: (Qty shares) increased 4.52%. This change is small and
indicates a moderate participation by investors.
Market Breadth: Overall Market Breadth on the NSE was negative.
Amongst all the traded stocks, 492 were gainers, 762 were losers and
56 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator is in the
neutral zone. The Slow K line in the Stochastic Oscillator is above
the slow D line (positive if it continues).
RSI Indicator: The RSI is above the 40 level but is now declining
(negative if it continues).
MACD Indicator: The MACD is below zero but is rising (positive if it
continues). It is above its 9-day Average (positive).
ADX Indicator & DI Lines: The +DI line is above the –DI line and both
lines are diverging (positive if it continues). The ADX is falling
while the Market Index is falling, which indicates that the present
down trend is decreasing in strength.
Moving Averages (Trend Indicators)
The index:
Is above its 5-day average (at 4906) Positive.
Is above its 15-day average (at 4844) Positive.
Is above its 25-day average (at 4933) Positive.
Is above its 200-day average (at 4014) Positive.
Overall Market Strength/Weakness: The indicators and oscillators
discussed here are indicating a strong market but with a neutral bias.
Support Levels:For short-term traders the immediate main support is at
4394 marked as S1 (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 = 4964 (This is the level where the trend is likely to
change during intra-day).
Support (1) = 4913.
Support (2) = 4874.
Resistance (1) = 5003.
Resistance (2) = 5054.
(For support and resistance levels all F&O stocks refer to the
Afternoon newspaper or click here http://www.stratstar.com/markets/resistance.php?type=Futures)
Outlook for Today: On Japanese candlestick patterns the index after
having formed a long white body candle has formed a black body candle
on higher volumes. This is negative.
However, the index is above its 5, 15, 25 and 200 day’s moving
averages. Moreover, the velocity parameters are also positively
trended. Both these indicate a positive bias and the possibility of a
further up move. Investors are advised to hold long positions.
Work with strict stop losses on all positions.