MARKET REPORT October
30, 2014
The Markets had a very positive session as while remaining
on a very favourable technical footing, the Markets ended the day with decent
gains following positive cues from the US Federal Reserve as well. The Markets opened
on a flat note today against hope of a positive opening but after trading in a
capped range in the initial trade, the Markets transformed itself into upward
rising trajectory. The Markets maintained its positive trend until late
afternoon trade wherein it traded sideways while maintaining its gains.
However, in the last hour of the trade, the Markets saw some more strength
coming in. It moved further up and posted a fresh lime time high of 8181.55 in
the late afternoon trade. Markets more or less maintained those levels but
finally ended the day at 8169.20, posting a decent gain of 78.75 points or
0.97% while forming a sharply higher top and higher bottom on the Daily Bar
Charts.
MARKET TREND FOR FRIDAY, OCTOBER 31, 2014
Friday’s session would remain very critical and also
interesting as well. There are chances that the Markets may open modestly
positive and may attempt to break out on the upside while making fresh lifetime
highs. At the same time, if the Markets fails to give a clear breakout, we can
fairly expect it to correct from higher levels and consolidate again. The
behaviour of the Markets above 8181 would be critical.
The levels of 8181 and 8230 (fresh unchartered trajectory)
would act as resistance. The supports would come in at 8105 and 8085 levels.
The RSI—Relative Strength Index on the Daily Chart is
64.5484 and it has reached its highest value in last 14-days which is bullish.
Though it does not show any bullish or bearish divergences. The Daily MACD
continues to trade bullish above its signal line.
On the derivative front, NIFTY saw heavy rollovers on the
long side as the November futures added over 43.48 lakh shares or 30.57% in
Open Interest. Markets wide rollovers to remained in line on expected lines.
Coming to pattern analysis, the Markets have pulled back
after taking support on 100-DMA twice and has attempted to breakout by testing
its previous lifetime highs. Overall, given this fact, until the Markets break
outs above 8181 levels, it would remain in a broad trading range.
All and all, the Markets may attempt to break out and move
past the levels of 8181 towards fresh lifetime highs. However, it also cannot
be rule out that there are some technical possibilities of some profit taking
from higher levels which can cause the Markets to once again continue to trade
in a given range. Overall, any upside should be utilized to book and protect
profits. Purchases should be limited and selective until the breakout gets
validated and confirmed. Cautious optimism is continued to be advised.
Milan Vaishnav,
Consulting Technical Analyst,
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA
www.MyMoneyPlant.co.in
Af. Member: Market Technicians Association (MTA), USA
Af. Member: Association of Technical Market Analysts, INDIA
www.MyMoneyPlant.co.in
+91-98250-16331
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