NSE India : CNX Nifty — Daily Market Report for: Monday (November 9, 2015) By Dominic Rebello
Review of the Previous day:
The Nifty fell marginally on Friday (November 06, 2015) a net 1.15 points (0.01%) and closed at the 8154 point level. The market opened flat at the 7956 points level. It then rose sharply and registered the day’s high at the 8002 points level at 9.20 a.m. The index then declined and turned into a range bound movement until 1.25 p.m. It then declined sharply into the red and registered the day’s low at the 7926 points level at 2.00 p.m. The index then rose and turned into a range bound movement to close the day on a flat note. The Nifty witnessed a volatile session and moved in a range of 77 points. Sentiment was mixed and amongst the 50 Nifty stocks 27 were gainers, while 23 stocks closed in the red. Substantial selling was witnessed in healthcare and power stocks.
Volume: Volume (Qty shares) increased 12.06%. 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, 481 were gainers, 949 were losers and 45 remained unchanged.
Slow Stochastic Indicator: The Slow Stochastic Oscillator has declined 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 above the 30 level and is now turned flat (positive if it rises).
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 and both lines are flat. No signal here.
The ADX is rising while the Market Index is flat. No signal here.
Moving Averages (Trend Indicators)
The index: Is below its 5-day average (at 8012) Negative.
Is below its 15-day average (at 8148) Negative.
Is below its 25-day average (at 8140) Negative.
Is below its 200-day average (at 8368) Negative.
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 the 7790 points level.
The next support is at the 7552 points level.
Resistance Levels: The immediate main resistance is at the 8345 points level.
The next resistance is at the 8475 points level.
Pivot Point Analysis: For intra-day traders the support and resistance levels are calculated according to the pivot point theory and are:
Pivot point = 7961 (This is the level where the trend is likely to change during intra-day).
Support (1) = 7919.
Support (2) = 7885.
Resistance (1) = 7996.
Resistance (2) = 8038.
Outlook for Today:
On Japanese candlestick patterns the index has formed a doji pattern. This indicates indecisiveness amongst investors. 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, 25 and 200 day moving averages and all the four averages are declining. Further, the 5 day moving average is below the 15 and 25 day moving averages. Moreover, the velocity parameters too indicate weakness. All these indicate a negative bias and the possibility of a further decline unfolding. Investors are advised to avoid buying at current levels.