Afternoon Newspaper : Daily Market Report for Friday (November 20, 2009)
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genius trader
Nov 19, 2009, 10:52:55 PM11/19/09
to dee...@stratstar.com
Afternoon Newspaper
Market in correction mode…
By Dominic Rebello
Review of the Previous day: The Nifty fell substantially on Thursday (November 19, 2009) a net 65.70 points (1.30%) and closed at 4989 point level. The market opened down and continued so until 02:51 p.m. when it reached its day low at 4963 points. Then it rose and turned into a range bound movement until closing at the day. The market moved in a range of 90 points. Sentiment was bearish and amongst the 50 Nifty stocks, 44 were losers, while just 6 were gainers. Selling was witnessed across all the sectors. Realty, oil & gas, technology, telecom and metal were amongst the worst hit sectors.
Technical Analysis:
Volume: (Qty shares) increased 10.83%. This change is moderate and indicates a moderate participation by investors.
Market Breadth: Overall Market Breadth on the NSE was negative. Amongst all the traded stocks, 386 were gainers, 877 were losers and 50 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator is in the over-bought zone.The Slow K line in the Stochastic Oscillator has dropped below the slow D line (negative and a sell signal).
RSI Indicator: The RSI is above the 40 level but is now declining (negative if it continues).
MACD Indicator: The MACD is above zero and has turned flat (positive if it rises). It is above its 9-day Average (positive).
ADX Indicator & DI Lines: The +DI line is below the –DI line and both lines are diverging (negative if it continues). The ADX is falling while the Market Index is falling, which indicates that the present down trend is decreasing in strength.
Moving Averages (Trend Indicators)
The index:
Has dropped below its 5-day average (at 5032) Negative.
Is above its 15-day average (at 4879) Positive.
Is above its 25-day average (at 4935) Positive.
Is above its 200-day average (at 4070) Positive.
Overall Market Strength/Weakness: The indicators and oscillators discussed here are indicating a strong market but with a negative 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 = 5002 (This is the level where the trend is likely to change during intra-day).
Support (1) = 4951.
Support (2) = 4912.
Resistance (1) = 5040.
Resistance (2) = 5092.
(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 doji patterns (indicating indecisiveness amongst market men) has formed a black body candle on higher volumes. This indicates that the bias has shifted towards the sell side of the market. Further, the index has dropped below its 5 day’s moving average. Moreover, the velocity parameters, which were positively trended, have now turned neutral. All these indicate a negative bias.
However, the index is above its 15, 25 and 200 day’s moving averages.
Investors are advised to hold long positions, but with a strict stop loss at the 15 day’s moving average at the 4879 points level.
Work with strict stop losses on all positions.
--------------------------------------------------------------------------------------------------------------------------------
Legendary Rakesh Jhunjhunwala Demystified...
The Afternoon newspaper has carried an article that reveals
the CHARACTERISTICS that have made Rakesh Jhunjhunwala successful and also his TEN
COMMANDMENTS FOR INVESTING
To read the entire article that demystifies the persona and also
offers the best lessons on successful investing…Click Here
(http://www.investmentmap.com/RakeshJhunjhunwala.htm)
Market in correction mode…
By Dominic Rebello
Review of the Previous day: The Nifty fell substantially on Thursday (November 19, 2009) a net 65.70 points (1.30%) and closed at 4989 point level. The market opened down and continued so until 02:51 p.m. when it reached its day low at 4963 points. Then it rose and turned into a range bound movement until closing at the day. The market moved in a range of 90 points. Sentiment was bearish and amongst the 50 Nifty stocks, 44 were losers, while just 6 were gainers. Selling was witnessed across all the sectors. Realty, oil & gas, technology, telecom and metal were amongst the worst hit sectors.
Technical Analysis:
Volume: (Qty shares) increased 10.83%. This change is moderate and indicates a moderate participation by investors.
Market Breadth: Overall Market Breadth on the NSE was negative. Amongst all the traded stocks, 386 were gainers, 877 were losers and 50 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator is in the over-bought zone.The Slow K line in the Stochastic Oscillator has dropped below the slow D line (negative and a sell signal).
RSI Indicator: The RSI is above the 40 level but is now declining (negative if it continues).
MACD Indicator: The MACD is above zero and has turned flat (positive if it rises). It is above its 9-day Average (positive).
ADX Indicator & DI Lines: The +DI line is below the –DI line and both lines are diverging (negative if it continues). The ADX is falling while the Market Index is falling, which indicates that the present down trend is decreasing in strength.
Moving Averages (Trend Indicators)
The index:
Has dropped below its 5-day average (at 5032) Negative.
Is above its 15-day average (at 4879) Positive.
Is above its 25-day average (at 4935) Positive.
Is above its 200-day average (at 4070) Positive.
Overall Market Strength/Weakness: The indicators and oscillators discussed here are indicating a strong market but with a negative 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 = 5002 (This is the level where the trend is likely to change during intra-day).
Support (1) = 4951.
Support (2) = 4912.
Resistance (1) = 5040.
Resistance (2) = 5092.
(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 doji patterns (indicating indecisiveness amongst market men) has formed a black body candle on higher volumes. This indicates that the bias has shifted towards the sell side of the market. Further, the index has dropped below its 5 day’s moving average. Moreover, the velocity parameters, which were positively trended, have now turned neutral. All these indicate a negative bias.
However, the index is above its 15, 25 and 200 day’s moving averages.
Investors are advised to hold long positions, but with a strict stop loss at the 15 day’s moving average at the 4879 points level.
Work with strict stop losses on all positions.
--------------------------------------------------------------------------------------------------------------------------------
Legendary Rakesh Jhunjhunwala Demystified...
The Afternoon newspaper has carried an article that reveals
the CHARACTERISTICS that have made Rakesh Jhunjhunwala successful and also his TEN
COMMANDMENTS FOR INVESTING
To read the entire article that demystifies the persona and also
offers the best lessons on successful investing…Click Here
(http://www.investmentmap.com/RakeshJhunjhunwala.htm)
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