Afternoon Newspaper : Daily Market Report for Thursday (November 19, 2009)
Stratstar
By Dominic Rebello
Review of the Previous day: The Nifty fell marginally on Wednesday
(November
18, 2009) a net 7.55 points (0.15%) and closed at 5054 point level.
The
market opened down then turned up and continued so until 11:00 a.m.
when it
reached its day high at 5079 points. Then it fell and turned into a
range
bound movement until closing at the day flat. The market moved in a
narrow
range of just 38 points. Sentiment was mixed and amongst the 50 Nifty
stocks, 27 were gainers, while 23 were losers. Buying was witnessed in
realty, select FMCG, telecom, pharma, metal and power stocks, while
some
selling was witnessed in oil & gas, banks and capital goods stocks.
Technical Analysis:
Volume: (Qty shares) increased 6.84%. 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, 720 were gainers, 555 were losers and 42 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).
RSI Indicator: The RSI is above the 40 level and is now turned flat
(positive if it rises).
MACD Indicator: The MACD is 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 flat. No signal here. The ADX is falling while the Market Index is
flat.
No signal here.
Moving Averages (Trend Indicators)
The index:
Is above its 5-day average (at 5025) Positive.
Is above its 15-day average (at 4869) Positive.
Is above its 25-day average (at 4941) Positive.
Is above its 200-day average (at 4059) Positive.
Overall Market Strength/Weakness: The indicators and oscillators
discussed
here are indicating a strong market but with a neutral 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 = 5059 (This is the level where the trend is likely to
change
during intra-day).
Support (1) = 5038.
Support (2) = 5021.
Resistance (1) = 5075.
Resistance (2) = 5096.
(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 doji pattern. This indicates that the
indecisiveness
amongst market men continues. The next candle formation will confirm
whether
the bias is towards the buy or sell side of the market.
However, the index is above its 5, 15, 25 and 200 day’s moving
averages. The
velocity parameters also continue to remain positively trended. Both
these
indicate the possibility of a further up move unfolding. Investors are
advised to hold long positions.
Work with strict stop losses on all positions.
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