Daily Technical Market Report for October 29, 2009 - Afternoon Newspaper
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Oct 29, 2009, 12:57:56 AM10/29/09
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Daily Technical Market Report for October 29, 2009 - Afternoon Newspaper
NSE India : S&P CNX Nifty - Daily Market Report for: Thursday (October 29, 2009)
WEAKNESS PERSISTS...
By Dominic Rebello
Review of the Previous day: The Nifty fell marginally on Wednesday (October 28, 2009) a net 20.55 points (0.42%) and closed at 4826 point level. The market opened down, then turned up and continued so until 12:34 p.m. when it reached its day high at 4867 points. Then it fell and turned into a range bound movement until closing at the day.
Infact, the Nifty slipped and fell below the 4800 points level but recovered and closed above the 4800 points level. Sentiment was bearish and amongst the 50 Nifty stocks, 31 were losers, while 19 were gainers. Heavy selling was witnessed in private banking, power, metal, cement, select auto and oil & gas stocks, while some buying was witnessed in realty, technology, pharma and PSU banking stocks.
Technical Analysis:
Volume: (Qty shares) decreased 6.48%. This change is small and indicates a moderate participation by investors.
Market Breadth: Overall Market Breadth on the NSE was negative. Amongst all the traded stocks, 496 were gainers, 775 were losers and 27 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator is in 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 30 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 4925) Negative.
Is below its 15-day average (at 5020) Negative.
Is below its 25-day average (at 5016) Negative.
Is above its 200-day average (at 3920) 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 4672 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 = 4826 (This is the level where the trend is likely to change during intra-day).
Support (1) = 4785.
Support (2) = 4743.
Resistance (1) = 4867.
Resistance (2) = 4909.
( For support and resistance levels for all F&O stocks refer to the Afternoon newspaper)
Outlook for Today: On Japanese candlestick patterns the index after having formed two consecutive black body candles has formed a doji pattern. This indicates indecisiveness amongst market men. The next candle formation will confirm whether the bias is towards the buy or sell side of the market.
However, the index is below its 5, 15 and 25 day’s moving averages. Moreover, the velocity parameters are also negatively trended. Both 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.
NSE India : S&P CNX Nifty - Daily Market Report for: Thursday (October 29, 2009)
WEAKNESS PERSISTS...
By Dominic Rebello
Review of the Previous day: The Nifty fell marginally on Wednesday (October 28, 2009) a net 20.55 points (0.42%) and closed at 4826 point level. The market opened down, then turned up and continued so until 12:34 p.m. when it reached its day high at 4867 points. Then it fell and turned into a range bound movement until closing at the day.
Infact, the Nifty slipped and fell below the 4800 points level but recovered and closed above the 4800 points level. Sentiment was bearish and amongst the 50 Nifty stocks, 31 were losers, while 19 were gainers. Heavy selling was witnessed in private banking, power, metal, cement, select auto and oil & gas stocks, while some buying was witnessed in realty, technology, pharma and PSU banking stocks.
Technical Analysis:
Volume: (Qty shares) decreased 6.48%. This change is small and indicates a moderate participation by investors.
Market Breadth: Overall Market Breadth on the NSE was negative. Amongst all the traded stocks, 496 were gainers, 775 were losers and 27 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator is in 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 30 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 4925) Negative.
Is below its 15-day average (at 5020) Negative.
Is below its 25-day average (at 5016) Negative.
Is above its 200-day average (at 3920) 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 4672 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 = 4826 (This is the level where the trend is likely to change during intra-day).
Support (1) = 4785.
Support (2) = 4743.
Resistance (1) = 4867.
Resistance (2) = 4909.
( For support and resistance levels for all F&O stocks refer to the Afternoon newspaper)
Outlook for Today: On Japanese candlestick patterns the index after having formed two consecutive black body candles has formed a doji pattern. This indicates indecisiveness amongst market men. The next candle formation will confirm whether the bias is towards the buy or sell side of the market.
However, the index is below its 5, 15 and 25 day’s moving averages. Moreover, the velocity parameters are also negatively trended. Both 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.
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