Afternoon Newspaper : Daily Market Report for Monday (December 29, 2009)
stratstar
By Dominic Rebello
Review of the Previous day: The Nifty rose moderately on Thursday
(December 24, 2009) a net 33.80 points (0.66%) and closed at the 5178
point level. The market opened up on positive Asian market cues but
then turned down. It again turned up and continued so until 2:35 hours
when it reached its day high at 5197 points. Then it fell and turned
into a range bound movement until closing at the day. The market moved
in a range of 69 points. Incidentally, the Nifty closed at a new 2009
high. Sentiment was bullish and amongst the 50 Nifty stocks, 34 were
gainers, while 16 were losers. Heavy Buying was witnessed across all
the sectors. Auto, metal and oil & gas were amongst the prominent
sectors that gained.
Technical Analysis:
Volume: (Qty shares) increased 2.89%. 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, 722 were gainers, 556 were losers and
51 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 rose and crossed above the 60 level and is now
rising (positive if it continues).
MACD Indicator: The MACD is above zero and is rising (positive if it
continues). It is below its 9-day Average (negative).
ADX Indicator & DI Lines: The +DI line is above the –DI line and both
lines are diverging (positive if it continues). The ADX is flat while
the Market Index is rising. No signal here.
Moving Averages (Trend Indicators)
The index:
Is above its 5-day average (at 5049) Positive.
Is above its 15-day average (at 5077) Positive.
Is above its 25-day average (at 5074) Positive.
Is above its 200-day average (at 4354) 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
4788 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 = 5168 (This is the level where the trend is likely to
change during intra-day).
Support (1) = 5139.
Support (2) = 5100.
Resistance (1) = 5208.
Resistance (2) = 5237.
(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 has
formed a third consecutive, but small white body candle on higher
volumes. The body of this candle is above and outside the body of the
previous white body candle indicating a range expansion and
acceleration.
Further, the index is above its 5, 15, 25 and 200 day’s moving
averages. Moreover, the velocity parameters are also positively
trended. All these indicate a positive bias and the possibility of a
further up move unfolding.
Incidentally, the index is approaching a major resistance level at the
5193 points level. (The index tested that level intra-day, in the
previous session, but could not sustain above it). There is a
possibility that the index could face some resistance there. However,
if it crosses above it, then a further sharp rise can be expected.
Investors are advised to hold long positions.
Work with strict stop losses on all positions