MARKET REPORT May
28, 2015
Though the Markets ended the day on a flat note, it had a
very volatile session during the day after opening on a much lower note. The
markets saw weaker than expected opening and after such opening, formed
intraday low of 8277.95 in the early minutes of the trade. The Markets saw
recovery from the lows of the day in the morning trade itself and attempt to
moved past the levels of 200-DMA. It moved in a sideways trajectory after
recovering most part of its losses for the remaining part of the session but
the Markets also saw some range bound volatile movements. It came off from its
previous close but recovered again. It maintained the levels a notch above its
200-DMA and finally ended the day at 8334.60, posting a flat close with minor
loss of 4.75 points or 0.06% while continuing to form a lower top and lower
bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, MAY 28, 2015
Expect the Markets to open today on a flat to modestly
positive note and trade in a caped range in the initial trade. The Markets have
attempted to move past its 200-DMA levels yesterday after opening lower and
today, it is very much likely to continue with this attempt and also attempt to
regain some stability by trading modestly above 200-DMA. The behaviour of the
Markets vis-à-vis the levels of 200-DMA will be crucial to watch out for.
The levels of 8375 and 8450 will act as immediate resistance
for today whereas the levels of 8325 and 8250 will act as immediate supports.
The RSI—Relative Strength Index on the Daily Chart is
48.2710 and it continues to remain neutral as it shows no bullish or bearish
divergence or any failure swings. The Daily MACD continues to remain bullish
while trading above its signal line.
On the Derivative front, the NIFTY May future have shed
21.49 lakh shares or 19.99% in Open Interest while the June futures have added 36.01
lakh shares or 54.85% in Open Interest. There has been net addition of 9 lakh shares
in the OI. Overall, the NIFTY and market wide rollovers have been in line with
its last 3 months average.
Coming to pattern analysis, the Markets have been witnessing
some short term consolidation with a bearish undertone after it attempted to
pullback after forming recent lows. However, though it has so far managed to
keep its head above 200-DMA after the pullback, the behaviour of the Markets vis-à-vis
the levels of 200-DMA would be extremely important. It will have to keep its
head above the 200-DMA levels if it has to attempt to continue with its
reversal. Though the Markets have so far trade above this level, it will
confirm the reversal only after it moves past its upper levels of broad trading
range.
All and all, the Markets are still not completely out of the
woods. The Markets are likely to pose a modestly positive opening but it will
have to maintain levels above 200-DMA. Today being the expiry day, the rollovers
would dominate the activity. Further, the other important triggers for the
Markets would be the GDP data coming out tomorrow and the RBI Policy on June 3rd.
With some amount of volatility likely overall cautious approach 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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