NSE India : S&P CNX Nifty
The Afternoon Newspaper : Daily Market Report for: Thursday (October
(Based on the activity of the previous trading day)
By Dominic Rebello
Review of the Previous day: The Nifty fell substantially on Wednesday
(October 21, 2009) a net 50.85 points (0.99%) and closed at 5063 point
level. The market opened down then turned up and continued so until
09:58 a.m. when it reached its day high at 5117 points. It then fell
and turned into a range bound movement until closing near the day low.
The market moved in a range of 66 points. Heavy selling was witnessed
in the last one hour of trade. Sentiment was bearish and amongst the
50 Nifty stocks, 13 were gainers and 37 were losers. Some buying was
witnessed in technology stocks, while selling was witnessed in
financial, FMCG, steel, auto, oil & gas, cement, pharma and some power
Volume: (Qty shares) increased 2.34%. 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, 482 were gainers, 791 were losers and
30 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator has declined
and has exited the over bought zone. The Slow K line in the Stochastic
Oscillator is below the slow D line (negative if it continues).
RSI Indicator: The RSI fell and crossed below the 60 level and 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 above the =96DI line but both
lines are converging (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)
Is below its 5-day average (at 5114) Negative.
Is above its 15-day average (at 5058) Positive.
Is above its 25-day average (at 5009) Positive.
Is above its 200-day average (at 3870) Positive.
All the four averages are positively trended. Positive.
Overall Market Strength/Weakness: The indicators and oscillators
discussed here are indicating a neutral market but with a negative
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 =3D 5078 (This is the level where the trend is likely to
change during intra-day).
Support (1) =3D 5038.
Support (2) =3D 5012.
Resistance (1) =3D 5103.
Resistance (2) =3D 5143.
Outlook for Today: On Japanese candlestick patterns the index has
formed a second consecutive black body candle on higher volumes. The
body of this candle is below and outside the body of the previous
black body candle. Moreover, the velocity parameters which were
neutrally trended have now turned negative. All these indicate a
negative bias and the possibility of a further decline unfolding.
However, the index is above its 15, 25 and 200 day=92s moving averages
and all the averages are positively trended. This is positive.
Investors are advised to hold long positions but with a strict stop
loss at the 15 day moving average, which is at the 5058 points level.
Work with strict stop losses on all positions.