Afternoon Newspaper : Daily Market Report for Wednesday (December 23, 2009)
Stratstar
2009)
Nifty recovers on firm global cues…
By Dominic Rebello
Review of the Previous day: The Nifty rose moderately on Tuesday
(December 22, 2009) a net 33.25 points (0.67%) and closed at the 4985
point level. The market opened up and continued so until 1:45 p.m.
when it reached its day high at 4997 points. Then it turned into a
range bound movement until closing at the day. The market moved in a
narrow range of just 44 points. Sentiment was bullish and amongst the
50 Nifty stocks, 35 were gainers, while 15 were losers. Buying was
witnessed in Metal, banking, realty, power and telecom stocks, while
selling was witnessed in cement stocks.
Technical Analysis:
Volume: (Qty shares) decreased 1.00%. 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, 831 were gainers, 453 were losers and
40 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 40 level and is now rising
(positive 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 flat. No signal here. The ADX is rising while the Market
Index is rising, which indicates that the present up trend is
increasing in strength.
Moving Averages (Trend Indicators)
The index:
Is below its 5-day average (at 5001) Negative.
Is below its 15-day average (at 5072) Negative.
Is below its 25-day average (at 5063) Negative.
Is above its 200-day average (at 4329) Positive.
Overall Market Strength/Weakness: The indicators and oscillators
discussed here are indicating a weak market but with a neutral bias.
Support Levels: For short-term traders the immediate main support is
at 4788 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 = 4979 (This is the level where the trend is likely to
change during intra-day).
Support (1) = 4960.
Support (2) = 4935.
Resistance (1) = 5004.
Resistance (2) = 5023.
(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 after
having formed two consecutive black body candles has formed a white
body candle. This indicates a positive bias.
However, the index continues to remain below its 5, 15 and 25 days
moving averages. Moreover, the velocity parameters are also negatively
trended. Both these indicate the possibility of a decline unfolding.
Investors are advised to avoid buying at current levels.
Work with strict stop losses on all positions.