MARKET REPORT March
03, 2015
Markets continued to post gains yesterday as well but while
doing so continued to encounter good amount of volatility as well. The Markets
saw a positive opening yesterday and after opening positive went further ahead
while forming day’s high of 8972.35. However, post morning trade, the Markets
saw some amount of profit taking coming in as it shed all of its morning gains
gradually to trade flat. It also dipped briefly into the negative territory
forming the day’s low of 8885.45. The Markets traded in a capped range in the
afternoon trade without any directional bias. The later part of the session
once again saw recovery coming in as the Markets recouped much of its early
losses. It went up almost near to its intraday high but finally settled the day
at 8956.75, posting a net gain of 54.90 points or 0.62% while forming a higher
top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR TUESDAY, MARCH 03, 2015
The Markets are expected to open on a quiet note and faces
two-fold possibility today. There are chances that they may attempt to continue
its up move and move towards the psychological mark of 9000 and at the same
time they continue to remain vulnerable to good amount of volatility and profit
taking from higher levels. The Markets now enter a crucial stage wherein they
would attempt to touch their life time highs and at the same time might also
resort to profit taking as well.
The levels of 8985 and 9040 would act as immediate
resistance for the Markets. The supports would exist at 8880 and 8750 levels.
The RSI—Relative Strength Index on the Daily Chart is
63.8821 and it does not show any failure swing. However, NIFTY has continued to
post fresh 14-period high but RSI has not yet and this is Bearish Divergence.
The Daily MACD has now reported a positive crossover and it is now bullish
trading above its signal line.
On the derivative front, the NIFTY March futures have added
over 8.73 lakh shares or 3.40% in Open Interest. This is positive indicator signifying
the continuation of creation of fresh longs in the system.
While having a look at pattern analysis, the Markets have
continued to move towards its life time highs and it is likely that it would
continue to do so today as well. There are chances that the Markets attempts to
continue with its up move but at the same time, as we had mentioned in our
yesterday’s edition of Daily Market Trend Guide, it would be still far from
what is known as a “break out” because of ever-rising upper trend line.
Therefore, even if it moves towards its highs, it would continue to remain
prone to high volatility and profit taking from higher levels.
Overall, it is advised to continue to remain heavily
cautious while making fresh purchases. The Markets still has some steam left to
not only move towards its life time highs but post fresh lifetime highs as well.
However given the technical structure and given the lead indicators, it is
advised to continue to keep over all exposure at moderate levels and keeping
fresh purchases highly selective.
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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