MARKET REPORT February
28, 2015
The Markets had an extremely buoyant session yesterday as
the Economic Survey presented before the Parliament significantly boosted the
sentiment. The Markets saw a positive and stable opening and traded with capped
but steady gains in the morning trade. As the day progressed, the Markets saw
one-way buying coming in and remained in upward rising trajectory throughout
the session. The Markets kept making fresh gradual highs and by the end of the
session, went on to make its day’s high of 8856.95. These levels were sustained
and the Markets finally ended the day at 8844.60, posting a decent gain of
160.75 points or 1.85% while forming a higher top and higher bottom on the
Daily Bar Charts.
MARKET TREND FOR SATURDAY, FEBRUARY 28, 2015
Today, the Markets would witness a major economic event,
Union Budget which shall be presented later today. The Markets are open today
on account of this. We can expect the Markets to open on a positive note and
look for further directions from the Budget.
We can expect to see a ranged trade in the morning session and the
volatility is slated to increase as the proposals start pouring in. The Markets
are approaching Budget with great hops and slightest failure of the Government
to meet the “hype” that has been created would be detrimental to the Markets in
the immediate short term.
The levels of 8920 and 8985 would act as immediate
resistance for the Markets. The supports come in at 8710 and 8640 levels.
The RSI—Relative Strength Index on the Daily Chart is
58.6169 and it remains neutral without showing any bullish or bearish
divergence or failure swings. The Daily MACD still continues to remain bearish
trading below its signal line.
On the derivative front, the NIFTY March futures have added
over 2.08 lakh shares or 0.87% in OI. This OI addition is little insignificant
in relation to the up move that was witnessed in yesterday’s session.
Returning to pattern analysis, the Markets are still within
its primary uptrend and trades above its critical support levels. Further, they
are yet to approach its rising upper trend line and the possibility of the
Markets resisting to this pattern resistance still remains a theoretical possibility.
So, if we look only at patterns, the Markets would find resistance at 8920 and
8995 levels going ahead. With absence of any negative triggers, the Markets
will have enough steam left to test the 9000-levels.
All and all, today’s session will have good amount of
volatility ingrained in it. While the Markets digest the proposals, wide
trading ranges are likely to occur. Further, with the Markets still having
theoretical possibility to resist to the upper rising trend lines, it is
advised to keep reducing positions and protects profits with each up move. Once
the Markets fully digest the Budgets, fresh purchases should be planned. It is
advised to approach the Markets with cautious optimism 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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