MARKET REPORT February
13, 2015
After spending the most part of the session struggling to
move past the crucial levels of 8640, the Markets finally saw sharp up move in
the last hour of the trade as it ended the day with decent gains. The Markets saw
quiet opening on expected lines, the Markets remaining positive in the morning
trade but slowly drifted into the red by afternoon. Though it did not saw any
major downside as well but continued to trade in a extremely capped and narrow
range just below 8640 levels while it formed its intraday low of 8599.25. It
was in the last 90-minuts of the trade that the Markets drifted back into the
positive territory. It saw a very sharp, near parabolic up move as it went onto
move past the 8640 levels. It further went on to form the day’s 8732.55. These
levels were maintained and the Markets ended the day at 8711.55, posting a
decent gain of 84.15 points or 0.98% while forming a higher top and higher
bottom on the Daily Bar Charts.
MARKET TREND FOR FRIDAY, FEBRUARY 13, 2015
Speaking purely on
technical grounds, the Markets are expected to open on a positive note and
continue with its up move at least in the initial trade. Having said this, the
levels of 8640 that it moved past yesterday will now once again continue to act
as support in event of any consolidation or minor downticks. The overall trend of the Markets remains
intact for the immediate short term.
The levels of 8775 and 8820 will not act as immediate resistance
for the Markets. The supports exist at 8640 and 8610 levels.
The RSI—Relative Strength Index on the Daily Chart is
56.5075 and it remains neutral showing no bullish or bearish divergence or
failure swing. The Daily MACD continues to remain bearish trading below its
signal line.
On the derivative front, the NIFTY February futures have
added over 4.97 lakh shares or 2.01% in Open Interest. This clearly signifies
addition of fresh long positions in yesterday’s up move. It also signifies that
the no short covering caused the yesterday’s rise. This makes the Markets
little bullish in the immediate short term.
Taking a cue from pattern analysis, the Markets have continued
to remain in an overall long term rising channel. Though it did resist to its
short term important resistance levels of 8640 yesterday for quite some time,
it has moved past that level. This level is now expected to act as immediate
support for the Markets. Given all things remaining constant, the Markets are
expected to test the upper rising trend line once again before it approaches
for any fresh lows.
Overall, the Markets have successfully kept its overall
prime trend intact. Baring some consolidation and minor corrections aside, the
basic trend remains positive. However, some volatility will continue to stay
ingrained. Having said this, it is advised to make fresh selective purchases
now but also profits at higher levels should be vigilantly protected. Overall
positive outlook is advised for today.
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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