Afternoon Newspaper : Daily Market Report for Tuesday (November 17, 2009)
Stratstar
Further Up move Expected…
By Dominic Rebello
Review of the Previous day: The Nifty rose substantially on Monday
(November 16, 2009) a net 59.10 points (1.18%) and closed at 5058
point level. The market opened up on positive global cues and
continued so until 01:30 p.m. when it reached its day high at 5073
points. Then it turned into a range bound movement until closing at
the day. The market moved in a range of 79 points. The Nifty closed
above the 5050 points level for the first time in the last 17
sessions. Sentiment was bullish and amongst the 50 Nifty stocks, 41
were gainers, while just 9 were losers. Heavy buying was witnessed in
realty, auto, banking, oil & gas and metal stocks, while some selling
was witnessed in technology stocks.
Technical Analysis:
Volume: (Qty shares) decreased 13.87%. This change is moderate and
indicates a moderate participation by investors.
Market Breadth: Overall Market Breadth on the NSE was positive.
Amongst all the traded stocks, 837 were gainers, 439 were losers and
43 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator is in the
over-bought 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 rose above zero and 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 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 4979) Positive.
Is above its 15-day average (at 4849) Positive.
Is above its 25-day average (at 4936) Positive.
Is above its 200-day average (at 4036) 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 = 5042 (This is the level where the trend is likely to
change during intra-day).
Support (1) = 5010.
Support (2) = 4963.
Resistance (1) = 5090.
Resistance (2) = 5121.
(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 white body candle. The body of this candle
is above and outside the body of the previous candle indicating a
range expansion and acceleration. Further the index is above its 5,
15, 25 and 200 day’s moving averages. The velocity parameters also
continue to remain positively trended. All 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.