MARKET REPORT January
12, 2015
The Markets had a volatile session on Friday as it swung on
either side in a wide range before ending the day with modest gains. The
Markets had a good positive start and it opened the day on a stronger note as
it formed its intraday high of 8303.30 in the early minutes of the trade. However,
post this opening, the Markets gradually pared its gains. By afternoon trade,
it had come off completely from the day’s high and traded flat. It further went
on to dip into the negative territory as it formed its day’s low of 8190.80. It
struggled to remain afloat as it traded in a very capped range moving in and
out of negative territory. In the last hour and half of trade, the Markets saw
some strength returning as it travelled back into the positive territory. It
went almost near to its day’s high and finally settled the day at 8284.50,
posting a modest gain of 49.90 points or 0.61% while forming a higher top and
higher bottom on the Daily Bar Charts
MARKET TREND FOR MONDAY, JANUARY 12, 2015
Technically speaking, the Markets have once again attempted
a pullback after taking support at its 100-DMA at Close levels. Expect the
Markets to open on a quiet to modestly positive note and look for directions.
The levels of 50-DMA are likely to pose some resistance. It would be important for
the Markets to move past this level to avoid any further consolidation at these
levels.
The levels of 8335 and 8370 would act as immediate
resistance and the levels of 8250 and 8210 would act as immediate supports.
The RSI—Relative Strength Index on the Daily Charts is
50.9454 and it is neutral as it shows no bullish or bearish divergence or any
failure swings. The Daily MACD is bullish as it has again reported a positive
crossover and now trades above its signal line. The Weekly RSI is 59.1236 and
it continues to remain neutral without showing any bullish or bearish
divergence or failure swings. The Weekly MACD is still bearish trading below
its signal line.
On the derivative front, the NIFTY January futures has shed
over 6.87 lakh shares or 3.86% in Open Interest. This remains an area of
concern as the it is essential that the Markets builds up fresh longs in order
to continue with the up move.
Taking a cue from pattern analysis, the Markets have taken
support at its 100-DMA twice and is attempting a pullback. However, on its way
up, the Markets are likely to face
resistance from 50-DMA, the support which it broke on the downside. Until this
happens, we might see the Markets trading in a broad trading range.
Overall, the overall trend in the Markets seems definitely
intact as there is no structural breach on the Daily Charts. The Markets will
have to move past the 50-DMA levels in order continue with its up move in
convincing manner. Though sectoral out performance would continue we will
continue to see stock specific purchases being made. Overall, while continuing
to keep leverage under control, positive optimism is advised for the day.
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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