MARKET REPORT December
30, 2014
Markets had a relatively stable session as it opened on a
decently positive note but came of a bit to end with modest gains. The Markets
saw a positive opening and after a buoyant opening the Markets moved in a
sideways trajectory for the most part of the morning session. In the afternoon,
the Markets saw some more strength coming it as it formed its intraday high of
8279.15. However, it never decisively broke its 50-DMA levels and it continued
to resist. The second half of the session saw some paring of gains from the
intraday high. The levels of 50-DMA continued to act as resistance and the
Markets finally ended the day at 8246.30, posting a modest gain of 45.60 points
or 0.56% while forming a higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR TUESDAY, DECEMBER 30, 2014
The analysis for the Markets continue to remain on similar
lines as the Markets have continued to resist at its 50-DMA. The Markets may
see a modestly positive opening again and may inch upward in the initial trade.
The Markets have attempted to continue with its pullback as it has formed a
higher top and higher bottom on the Daily Charts but the levels of 50-DMA would
be crucial to watch out for.
The levels of 8272 and 8325 would act as immediate
resistance for the Markets. The supports would come in at 8150 levels and then
at its 100-DMA which is 8093.
The RSI—Relative Strength Index on the Daily Chart is
47.7073 and it is neutral as it shows no bullish or bearish divergence or
failure swings. The Daily MACD continues to remain bearish as it trades below
its signal line.
On the derivative front, the NIFTY January futures have
added over 3.82 lakh shares or 1.85% in Open Interest. This shows some fresh
buying has been seen in the Marketts.
Going by the trend and pattern analysis, the Markets saw a
sharp correction from its lifetime high levels and went on to correct over 66%
from its top. It touched an intraday low of 7961.35 on 17th of
December and has thus attempted a pullback from there. On its way up, the
Markets have been resisting to its 50-DMA levels which is 8272 today. It would
be necessary for the Markets to move past and trade above this level to
continue with its pullback successfully.
Overall, the volumes are likely to continue to remain sedate
due to holidays. However, the general trend is likely to remain intact and we
might see gradual inching up of the Markets. In event of any downside, it is
not expected be any major decline. It is advised to continue to make selective
purchases while keeping adequate amount of liquidity. Stock specific and
sectoral out performance is likely as well. Though we might see some ranged
movements and some more resistance at current levels, the overall trend
continue to remain intact.
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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