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NSE India : S&P CNX Nifty - Daily Market Report for: Friday (January 29, 2010) Markets indecisive… By Dominic Rebello Review of the Previous day: The Nifty rose marginally on Thursday (January 28, 2010) a net 14.15 points (0.29%) and closed at the 4867 point level. The market opened up on positive global cues then turned down and continued so until 12:53 p.m. when it reached its day low at 4824 points. Then it rose and turned into a range bound movement until closing at the day. The Nifty moved in a range of 105 points. After declining for six consecutive sessions the Nifty closed in the green. Sentiment was bullish and amongst the 50 Nifty stocks 34 were gainers, while 16 were losers. Buying was witnessed in Metal, pharma, realty and banking stocks while selling was witnessed in telecom and FMCG stocks. Technical Analysis: Volume: Volume (Qty shares) increased 8.11%. 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, 567 were gainers, 766 were losers and 20 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 below the 30 level but is now rising (positive if it continues). MACD Indicator: The MACD is below zero and 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 but both lines are converging (positive if it continues). 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 4971) Negative. Is below its 15-day average (at 5152) Negative. Is below its 25-day average (at 5156) Negative. Is above its 200-day average (at 4599) 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 5580 marked as R1 (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 = 4874 (This is the level where the trend is likely to change during intra-day). Support (1) = 4818. Support (2) = 4769. Resistance (1) = 4923. Resistance (2) = 4979. Outlook for Today: On Japanese candlestick patterns the index after having formed four 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 days averages. Further, 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.
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