First Biggest Rally In 2014; Stock Markets In A Defiant Mood

Submitted by: Kiran Kumar Reddy

Indian shares rise nearly 2 percent to post their biggest daily gains this year on opportunity the central bank will keep interest rates on clutch and the U.S. Federal Reserve will stick to its ultra-loose monetary policy for long. The Bombay Stock Exchange Sensex closes at 21135 were up by 376 points or 1.81 percent. Bse Mid cap Index gained by 0.15 percent and the Bse Small Cap Index raised by 0.37 percent on today day trade.

Sensex Major Resistance on Upside at 21279-21423-21567

Sensex Major Support on Downside at 20880-20625-20481

Trend Deciding Level at 21024

Nifty Index Major Resistance on Upside at 6316-6358-6400

Nifty Index Major Support on Downside at 6202-6130-6088

Trend Deciding Level at 6244

Major Headlines

Pipavav Defence bags order worth Rs 221 cr from defense ministry

Bharat Forge divests 51.85% stake in Chinese JV operations for Rs 175 cr

United Phosphorous (UPL) promoter releases pledge on 1.3 cr shares

Tata Steel Q3 total sales up 9.4% at 2.06 mt (YoY)

Reliance Power’s Sasan UMPP achieves boiler light up for third 660 MW units

FIPB clears GlaxoSmithKline’s FDI proposal of worth Rs 6,300 cr

Promoters’ holding in SpiceJet to rise to 58.5% after allotment of new shares

Borivali land parcel sale to fetch Tata Steel Rs 950-1000 cr as per Source

Government will be releasing WPI Inflation data for December on January 15, 2014

Indian Indices

The Nse Nifty Index closed in the positive note today, were up by 101 points and closes at 6272. In excess of the next couple of days it is expected to trend is down till 6230. In this period the key support will be at 6230 and resistance will be at 6311.

The Nifty has faced resistance around the upper end of the Bollinger Band on the daily chart and at the 78.6% retracement level of the previous fall

In the daily chart the index is trading above the Twenty-Daily moving averages (DMA) and the Forty-DMA, ie 6228 and 6194 correspondingly. The momentum pointer is trading in negative mode.

In the hourly chart, the Nse Nifty is trading above the Twenty-hourly moving average (HMA) and the Forty-HMA, ie 6206 and 6212 correspondingly, which are vital intra-day levels. The hourly impetus indicator encompass turned positive. The market breadth was negative mode today with 687 advances and 739 declines on the National Stock Exchange.

Nifty Future Major Resistance on Upside at 6334-6368-6402

Nifty Future Major Support on Downside is at 6234-6168-6134

Trend Deciding Level at 6268

Bank Nifty Major Resistance on Upside at 11191-11285-11378

Bank Nifty Major Support on Downside at 10913-10729-10635

Trend Deciding Level is at 11007

5 Daily Moving Average @ 6283

50 Daily Moving Average @ 6178

200 Daily Moving Average @ 5900

5 Days Relative Strength Index @ 69 and 14 Days Relative Strength Index @ 58 INDICATES NIFTY PLACED IN TRADING ZONE, WITH BULLISH MOMENT.

GLOBAL TRENDS

Gold Trading Around 1250-1244

US Dollar Index Trading Around 80-80.80

NYMEX Crude Trading Below 95-92.30

Dow Future Trading Flat On Monday

Neutral Global Trend Seen

Stock Market Tips

Buy Nifty Fut January above 6315 sl 6290 Tgt 6335-6360 {Or} Sell Below 6265 sl 6290 Tgt 6245-6220

Buy Bank Nifty January above 11135 sl 11085 Tgt 11185-11235{Or} Sell Below 11035 sl 11085 Tgt 10985-10935

Article Source: http://www.charanwings.com/blog/post/First-Biggest-Rally-in-2014-Stock-Markets-in-a-Defiant-Mood

About the Author: Mr. Kiran Kumar Reddy, Technical Analyst and Founder of Charanwings Advisory Services providing trading advisory services in Equity, Derivatives and Commodity. He provides advisory services to large number of retail as well as Institutional Investors and traders and His advisory services giving back support to various broking houses and product support in Stock Futures, Commodity to Dalal Street Investment Journal since May 2012. He is also having good command in elliot wave theory his articles have also been published in various financial websites and he is also contributing daily news letter on equity market, which were published in Indian notes website. He also made a guest appearance in various workshops which were conducted on stock market awareness

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