Afternoon Despatch & Courier newspaper
 Mumbai Sept 15,2009

The Afternoon newspaper has introduced new columns basically to give
Day Traders an Advantage.What is of great value is the Support and
Resistance Levels for F&O
Scrips on a Daily Basis, which is not available in print anywhere.
Moreover the paper has introduced a Daily column on Technical Analysis
and intends to monitor the Nifty with recommendations.Today's report
is attached below... Its simple style and accurate analysis makes it a
good read...

NSE India : S&P CNX Nifty
Daily Market Report for: Tuesday (September 15, 2009)
(Based on the activity of the previous trading day)

By Dominic Rebello

Review of the Previous day: The market fell marginally on Monday
(September 14, 2009) a net 20.95 points (0.43%) and closed at the 4808
point level. The market opened up then turned down and continued so
until 10:18 a.m., when it reached its day low at 4786 points. Then it
rose and fluctuated violently until closing at the day. The market
moved in a narrow range of just 46 points. Incidentally, yesterday’s
fall came after the nifty had risen for  six consecutive sessions.
Sentiment seemed bearish and 35 of 50 Nifty stocks ended with losses.
Buying was witnessed in PSU banking, auto, select technology and oil
marketing companies' shares, while some selling was witnessed in
Telecom, cement, realty, select metal, capital goods and private
banking stocks.

Technical Analysis:

Volumes: Volumes (Qty shares) decreased 18.74%. This change is
substantial and indicates a less than full participation by traders.

Market Breadth:Overall Market Breadth on the NSE was neutral. Amongst
all the traded stocks, 632 were gainers, 638 were losers and 29
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 is above the 60 level but is now declining
(negative if it continues).

MACD Indicator: The MACD is above zero and is turned flat (positive if
it rises). It is above its 9-day Signal Line (positive).

ADX Indicator & DI Lines: The +DI line is above the –DI line but both
lines are converging (negative if it continues). The ADX is rising
while the Market Index is falling, which indicates that the present
down trend is increasing in strength.

Moving Averages (Trend Indicators)

The index:

Has dropped below its 5-day average (at 4815) Negative.

Is above its 15-day average (at 4719) Positive.

Is above its 25-day average (at 4630) Positive.

Is above its 200-day average (at 3616) Positive

All the four averages are positively trended. Positive.

Overall Market Strength/Weakness: The indicators and oscillators
discussed here are indicating a strong market but with a neutral bias.

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 = 4809 (This is the level where the trend is likely to
change during intra-day).
Support (1) = 4786.
Support (2) = 4763.
Resistance (1) = 4832.
Resistance (2) = 4855.

Outlook for Today:On Japanese candlestick patterns the index has again
formed a doji pattern. This indicates that the indecisiveness amongst
market men continues. The next candle formation will confirm whether
the bias is towards the buy or sell side of the market.
However, the index has dropped below its 5-day’s moving average.
Moreover the velocity parameters which were positively trended have
now turned neutral. Both these indicate a negative bias.
But the index continues to remain above its 15, 25 and 200-day’s
moving average and all the averages are rising and also positively
trended. This is positive.
Investors are advised to hold long positions but with a strict stop
loss at the 15 day’s moving average at the 4719 points level.
Work with strict stop losses on all positions.

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