Afternoon Newspaper : Daily Market Report for Monday (November 16, 2009)
Stratstar.com
By Dominic Rebello
Review of the Previous day: The Nifty rose moderately on Friday
(November 13, 2009) a net 46.30 points (0.93%) and closed at 4999
point level. The market opened down, then turned up and continued so
until 02:31 p.m. when it reached its day high at 5018 points. Then it
fell and turned into a range bound movement until closing at the day.
The market moved in a range of 75 points. Sentiment was bullish and
amongst the 50 Nifty stocks, 33 were gainers, while 17 were losers.
All the sectors barring Realty ended in the green. Heavy buying was
witnessed in oil & gas, technology, metal, FMCG, select auto and power
stocks, while some selling was witnessed in Realty stocks.
Technical Analysis:
Volume: (Qty shares) decreased 13.36%. This change is moderate and
indicates a moderate participation by investors.
Market Breadth: Overall Market Breadth on the NSE was neutral. Amongst
all the traded stocks, 635 were gainers, 638 were losers and 39
remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator has risen
and has entered 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 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 flat. No signal here. 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 4947) Positive.
Is above its 15-day average (at 4845) Positive.
Is above its 25-day average (at 4934) Positive.
Is above its 200-day average (at 4025) 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 = 4987 (This is the level where the trend is likely to
change during intra-day).
Support (1) = 4955.
Support (2) = 4911.
Resistance (1) = 5030.
Resistance (2) = 5062.
(For support and resistance levels of 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 black body candle has formed a white body candle. This
is positive. Further the 5 day’s moving average has risen above the 25
day’s moving average. Moreover, the index is above its 5, 15, 25 and
200 day’s moving averages. The velocity parameters are also 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.