Afternoon Newspaper : Daily Market Report for Wednesday (November 18, 2009)
Stratstar
2009)
Market recovers sharply in the last hour of trade…
By Dominic Rebello
Review of the Previous day: The Nifty rose marginally on Tuesday
(November
17, 2009) a net 4.20 points (0.08%) and closed at 5062 point level.
The
market opened up then turned down and continued so until 02:17 p.m.
when it
reached its day low at 5010 points. Then it rose and turned into a
range
bound movement until closing at the day flat. The Nifty closed above
the
5050 points level for the second consecutive day. Sentiment was mixed
and
amongst the 50 Nifty stocks, 23 were gainers, while 27 were losers.
Heavy
buying was witnessed in technology, metal, banking and select
infrastructure
stocks, while some selling was witnessed in oil & gas, telecom and
realty
stocks.
Technical Analysis:
Volume: (Qty shares) increased 3.99%. 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, 592 were gainers, 678 were losers and 44
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 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 but both
lines are converging (negative if it continues). The ADX is falling
while
the Market Index is flat. No signals here.
Moving Averages (Trend Indicators)
The index:
Is above its 5-day average (at 5015) Positive.
Is above its 15-day average (at 4855) Positive.
Is above its 25-day average (at 4941) Positive.
Is above its 200-day average (at 4047) 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 = 5049 (This is the level where the trend is likely to
change
during intra-day).
Support (1) = 5024.
Support (2) = 4985.
Resistance (1) = 5087.
Resistance (2) = 5113.
(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 white 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 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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READ IN TODAY'S Afternoon NEWSPAPER - Legendary Rakesh Jhunjhunwala
Demystified...This article demystifies the persona and also offers the
best lessons on successful investing…*