Afternoon Newspaper : Daily Market Report for Thursday (November 12, 2009)
Stratstar.com
Nifty could rise to test the 5193 points level…
By Dominic Rebello
Review of the Previous day: The Nifty rose substantially on Wednesday
(November 11, 2009) a net 122.25 points (2.50%) and closed at 5004
point level. The market opened flat then turned up and continued so
throughout the day until closing near the day high. The market moved
in a range of 147 points. Sentiment was extremely bullish and amongst
the 50 Nifty stocks, 47 were gainers, while just 3 were losers. Heavy
buying was witnessed across all sectors.
Technical Analysis:
Volume: (Qty shares) decreased 3.63%. 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, 901 were gainers, 383 were losers and
42 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 and is now rising
(positive if it continues).
MACD Indicator: The MACD is below zero but is rising (positive if it
continues). It has crossed above its 9-day Average (positive and a buy
signal).
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 rising, which indicates that the present up
trend is decreasing in strength.
Moving Averages (Trend Indicators)
The index:
Is above its 5-day average (at 4869) Positive.
Is above its 15-day average (at 4851) Positive.
Has risen above its 25-day average (at 4936) Positive.
Is above its 200-day average (at 4003) Positive.
Overall Market Strength/Weakness: The indicators and oscillators
discussed here are indicating a strong market with a positive 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) = 4910.
Support (2) = 4817.
Resistance (1) = 5057.
Resistance (2) = 5110.
*(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 doji pattern (indicating indecisiveness amongst
investors) has formed a long white body candle. This indicates that
the bias has shifted towards the buy side of the market. Further the 5
day’s moving average has risen above the 15 day’s moving average. This
is positive and a buy signal. Moreover, the index has risen above the
25 day’s moving average. The index is now above its 5, 15, 25 and 200
day’s moving averages.
The velocity parameters are also positively trended. All these
indicate the possibility of a further up move, perhaps up to the 5193
point level. Investors are advised to hold long positions.
Work with strict stop losses on all positions.