Afternoon Newspaper : Daily Market Report for Tuesday (December 22, 2009)
Stratstar
Weakness Persists...
By Dominic Rebello
Review of the Previous day: The Nifty fell moderately on Monday
(December 21, 2009) a net 35.10 points (0.70%) and closed at the 4952
point level. The market opened up then turned down and continued so
throughout the day until closing near the day low. Sentiment was
bearish and amongst the 50 Nifty stocks, 40 were losers, while just 9
were gainers and 1 remained unchanged. Heavy selling was witnessed
across all the sectors. Capital goods, metal, auto and realty stocks
were amongst the worst hit sectors.
Technical Analysis:
Volume (Qty shares) decreased 15.13%. This change is substantial and
indicates a less than full participation by investors.
Market Breadth: Overall Market Breadth on the NSE was negative.
Amongst all the traded stocks, 501 were gainers, 781 were losers and
46 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator has declined
and has entered the over sold 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 but is now declining
(negative 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 and both
lines are diverging (negative if it continues). The ADX is rising
while the Market Index is falling, which indicates that the present
down trend is increasing in strength.
Moving Averages (Trend Indicators)
The index:
Is below its 5-day average (at 5011) Negative.
Is below its 15-day average (at 5081) Negative.
Is below its 25-day average (at 5066) Negative.
Is above its 200-day average (at 4318) Positive.
Overall Market Strength/Weakness: The indicators and oscillators
discussed here are indicating a weak market with a negative 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 = 4965 (This is the level where the trend is likely to
change during intra-day).
Support (1) = 4932.
Support (2) = 4911.
Resistance (1) = 4986.
Resistance (2) = 5019.
(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 second consecutive black body candle. The body of this candle
is below and outside the body of the previous black body candle.
Further, the index continues to remain below its 5, 15 and 25 days
moving averages. Moreover, the velocity parameters are also negatively
trended. All 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.