MARKET REPORT March
10, 2015
Initiated by weak technicals and further stimulated by fears
of early rate hike by US, the Markets saw a deep cut as it opened nearly gap
down and ended the day with good amount of losses. The Markets saw a negative
start and within initial seconds of the trade, the losses deepened and the
Markets traded significantly down. Post opening losses, the Markets moved in sideways
trajectory and did so in a very narrow range. While showing no signs of
recovery, the Markets saw some more weakness creeping in. It went further down
to form the day’s low of 8740.45 towards the end of the session. No recovery
was seen and the Markets finally ended the day at 8756.75, posting a deep cut
of 181 points or 2.03% while forming a sharply lower top and lower bottom on
the Daily Bar Charts.
MARKET TREND FOR TUESDAY, MARCH 10, 2015
Markets are expected to see a flat to mildly positive
opening today and there are chances that we see some stability returning to the
Markets. The Markets have ended the day yesterday near one of the pattern
supports and the opening levels of the Markets and the intraday trajectory that
it forms thereafter would be critically important for the Markets. If the
Markets opens and drifts lower, then the possibility of the Markets testing the
levels of 8640 cannot be ruled out. However, stability in the initial trade is
expected.
For today, the levels of 8830 and 8875 will act as
resistance and the levels of 8730 and 8640 are likely to act as important
supports.
The RSI—Relative Strength Index on the Daily Chart is
48.7251. It has reached its lowest value in last 14-periods which is bearish.
The RSI has set a fresh 14-period low whereas NIFTY has not yet and this is
bearish divergence. The Daily MACD is bearish as it now trades below its signal
line.
On the derivative front, the NIFTY March futures have shed
over 10.66 lakh shares or 4.09% in Open Interest. This clearly suggests
unwinding of long positions. The NIFTY PCR stands at 0.92 as against 0.98 a day
before.
Coming to pattern analysis, the Markets have reacted sharply
after touching its upper rising trend line. However, even after yesterday’s
downside, the Markets still continues to remain in overall rising channel.
Further, it has attempted to take support at a minor rising support line. We
can expect to see some stability coming in here. However, if the Markets see
some more weakness, the possibility of the Markets testing the 50-DMA OR the
8640 levels cannot be ruled out. However, even if these levels are tested, the
Markets would continue to remain in broad consolidation zone.
Overall, the Markets continue to remain in broad consolidation
/ corrective range. Today as well, though we can see some stability returning
to the Markets, runaway pullback may not be expected. Volatility too would
remain ingrained in the Markets. While some fresh but very selective purchases
may be made, we continue to reiterate to approach the Markets with caution
while attempting to keep exposures at moderate levels.
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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