NSE India: S&P Nifty — Daily Market Report for: Wednesday (July 11, 2012)
(Based on the activity of the previous trading day) by Dominic Rebello
Review of the Previous day:
The Nifty rose substantially on Tuesday (July 10, 2012) a net 70.20 points (1.33%) and closed at the 5345 point level. The market opened up with a gap at the 5286 points level on positive global cues. It then declined by a few points and registered the day’s low at the 5284 points level at 9.35 a.m. The index then rose and turned into a range bound movement until 2.00 p.m. It then rose sharply on positive European cues and registered the day’s high at the 5348 points level at 3.07 p.m. and then turned into a range bound movement until closing at the day The Nifty remained above its previous close throughout the session and moved in a range of 64 points. Sentiment was extremely bullish and amongst the 50 Nifty stocks 48 were gainers, while just 2 stocks closed in the red. All the sectoral indices closed in the green. Heavy buying was seen in capital goods, FMCG, auto, banking, metal and realty stocks.
Volume (Qty shares) increased 5.00%. This change is small and indicates a moderate participation by investors.
Overall Market Breadth on the NSE was positive. Amongst all the traded stocks, 937 were gainers, 494 were losers and 77 remained unchanged.
Slow Stochastic Indicator:
The Slow Stochastic Oscillator is in the over-bought zone.
The Slow K line in the Stochastic Oscillator is below the slow D line (negative if it continues).
The RSI is above the 60 level and is now rising (positive if it continues).
The MACD is above zero and is now 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 and both lines are diverging (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)
Has crossed above its 5-day average (at 5313) Positive.
Is above its 15-day average (at 5224) Positive.
Is above its 25-day average (at 5165) Positive.
Is above its 200-day average (at 5086) Positive.
All the four averages are positively trended. Positive.
Overall Market Strength/Weakness:
The indicators and oscillators discussed here are indicating a strong market with a positive bias.
For short-term traders the immediate main support is at 4926 marked as S1.
The next support is at 4724 marked as S2.
The immediate main resistance is at 5472 marked as R1.
The next resistance is at 5653 marked as R2.
Pivot Point Analysis:
For intra-day traders the support and resistance levels are calculated according to the pivot point theory and are:
Pivot point = 5326 (This is the level where the trend is likely to change during intra-day).
Support (1) = 5304.
Support (2) = 5262.
Resistance (1) = 5368.
Resistance (2) = 5390.
Outlook for Today:
On Japanese candlestick patterns the index after having formed two consecutive doji patterns (indicating indecisiveness amongst investors) has formed a long white body candle on higher volumes. In fact, yesterday's candle is almost like a white body Marubozu candle. (A White Marubozu forms when the open equals the low and the close equals the high). This is positive and indicates that the bias has shifted towards the buy side of the market.
Further, the index has crossed above the 5 day’s moving average. The index is now above the above the 5, 15, 25 and 200 day’s moving averages and all the four averages are rising and also positively trended. Moreover, the velocity parameters continue to indicate strength. All these indicate a positive bias and the possibility of a further up move unfolding. Investors are advised to hold long positions.