MARKET REPORT March
04, 2015
Markets traded on expected lines as it continued to scale
fresh highs and also showed some signs of consolidation initially while it
ended the day with modest gains. The Markets saw a modestly negative opening
but formed its intraday low of 8925.55 in the early minutes of the trade.
Though the Markets crawled back into the greed after initial weakness, the
morning trade saw the Markets remaining in very much capped range with no
directional bias it kept coming in and out of green. The afternoon trade saw
the Markets crawling back into the positive territory and this time, it was
followed by fresh up move. The Markets kept forming gradual highs and went on
to post fresh lifetime high of 9008.40. These levels were maintained and the
Markets finally ended the day at 8996.25, posting a modest gain of 39.50 points
or 0.44% while continuing to form a higher top and higher bottom on the Daily
Bar Charts.
MARKET TREND FOR WEDNESDAY, MARCH 04, 2015
The Markets are expected to take a breather after touching
fresh lifetime highs and psychologically important 9000-mark and are expected
to consolidate once again. We can expect a quiet to mildly negative opening;
however, some amount of volatility and intermittent bouts on either side cannot
be ruled out. The Markets continues to remain within its upward channel.
The levels of 9025 and 9060 would act as immediate
resistance for the Markets. The supports exist much lower at 8830 and 8750
levels.
The RSI—Relative Strength Index on the Daily Chart is
65.6048 and it has reached its highest value in last 14-days which is Bullish.
It does not show any bullish or bearish divergence. The Daily MACD remains
bullish trading above its signal line.
On the derivative front, NIFTY March futures have added
another over 12.30 lakh shares or 4.63% in Open Interest. This signifies
continuation of creation of fresh longs in the system which is a positive
indicator for the immediate short term showing the current trend intact.
Coming to pattern analysis, as we have often mentioned in
our previous editions of Daily Market Trend Guide, the Markets may continue to
post fresh lifetime highs but at the same time, it will NOT see any break out
unless it very significantly breaches the current rising trend line. This would
keep the Markets prone to consolidation and profit taking bouts at higher
levels.
All and all, we continue to keep the analysis for today on
similar lines. With the Markets continuing to remain within the upward channel
below the rising trend line, it is yet to achieve a fresh break out. Given this
fact that it is vulnerable to profit taking bouts from higher levels, fresh
positions should be kept very curtailed and selective while emphasising more on
protection of profits at higher 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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