> NSE India : S&P CNX Nifty - Daily Market Report for: Friday (November
> 06, 2009)

> Nifty Recovers Sharply in late trade on Disinvestment Plans…

> By Dominic Rebello

> Review of the Previous day: The Nifty rose substantially on Thursday
> (November 05, 2009) a net 54.75 points (1.16%) and closed at 4765
> point level. The market opened down and continued so until 12:26 hours
> when it reached its day low at 4610 points. Then it rose sharply in
> the latter half of the day and closed near the day high. Sentiment was
> bullish and amongst the 50 Nifty stocks, 41 were gainers, while 9 were
> losers. Heavy buying was witnessed in telecom, metal, realty, power,
> auto, oil & gas exploration, select banking and capital goods stocks.

> Technical Analysis:

> Volume: (Qty shares) increased 7.87%. This change is moderate and
> indicates a moderate participation by investors.

> Market Breadth: Overall Market Breadth on the NSE was positive.
> Amongst all the traded stocks, 951 were gainers, 322 were losers and
> 39 remained unchanged.

> Slow Stochastic Indicator: The Slow Stochastic Oscillator has risen
> and has exited the over sold zone. The Slow K line in the Stochastic
> Oscillator is above the slow D line (positive if it continues).

> RSI Indicator: The RSI rose and crossed above the 40 level and 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:

> Has risen above its 5-day average (at 4700) Positive.

> Is below its 15-day average (at 4913) Negative.

> Is below its 25-day average (at 4960) Negative.

> Is above its 200-day average (at 3961) Positive.

> Overall Market Strength/Weakness: The indicators and oscillators
> discussed here are indicating a neutral market but with a positive
> 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 = 4718 (This is the level where the trend is likely to
> change during intra-day).
> Support (1) = 4659.
> Support (2) = 4552.
> Resistance (1) = 4824.
> Resistance (2) = 4883.

>  (For  support and resistance levels all F&O stocks refer to the
> Afternoon
> newspaper.)

> Outlook for Today: On Japanese candlestick patterns the index has
> formed a second consecutive white body candle on higher volumes. In
> fact, yesterday's candle has a long lower tail. A long lower tail
> indicates that sellers dominated trading and drove prices lower during
> the session. However by the end of the session, buyers resurfaced and
> pushed prices back.

> Further, the index has risen above its 5 day’s moving average.
> Moreover, the velocity parameters, which were neutrally trended, have
> now turned positive. All these indicate a positive bias.

> Incidentally, all these may be the first signs of a reversal pattern.
> A crossover by the index above the 15 days average will confirm the
> same.
> Investors are advised to adopt a wait and watch policy until a clear
> reversal pattern emerges.

> Work with strict stop losses on all positions.