MARKET REPORT May
20, 2015
We had mentioned in our yesterday’s edition of Daily Market
Trend Guide that we might continue to witness intermittent profit taking bouts.
Markets yesterday ended the day with minor losses as it saw bout of profit taking
while coming off from its day’s high. The Markets saw a modestly negative
opening and it formed its intraday low of 8335 in the early minutes of the
trade. After this, the Markets transformed themselves into rising channel and
slowly recovered all of its losses. It continued to display strength as it
added to the gains and went on to form the day’s high of 8427.80 in the
afternoon trade. However, suddenly the Markets saw a profit taking bout and it
came off from its highs and even dipped further into the negative territory. It
showed some recovery but finally ended the day at 8365.65 with minor loss of 8
points or 0.10% while still continuing to form a higher top and higher bottom
on the Daily Bar Charts.
MARKET TREND FOR WEDNESDAY, MAY 20, 2015
Today, once again, we can expect a day of consolidation for
the Markets. The Markets are expected to open on a flat to modestly positive
note and trade stable in the initial trade. However, we can expect the Markets
to consolidate at higher levels and continue to remain in a broad trading range
with the levels of yesterday’s high acting as immediate resistance.
For today, the levels of 8430 and 8500 are immediate resistance
for the Markets. The supports come in at 8335 and 8270 levels.
The RSI—Relative Strength Index on the Daily Chart is
50.7186 and it is neutral as it shows no bullish or bearish divergence or any
failure swings. The Daily MACD remains bullish as it trades above its signal
line.
On the derivative front, NIFTY May futures have shed 21,050
shares or 0.15% in Open Interest. This OI figures is nominal enough to be
called unchanged and some amount of FII buying has been witnessed yesterday as
well.
Coming to pattern analysis, the Markets are once again
consolidating after it moved past the levels of 200-DMA. In normal course of
business, this level of 200-DMA is likely to act as support in event of any
consolidation and some downside, if any. The Markets are otherwise expected to
slowly approach its 100-DMA levels of 8544 levels in due course of time if it
successfully continues it’s up move and if it confirms the bottom that it
formed on 7th of May. Coming sessions would be critical to see if
the Markets continues with its up move and if at all it consolidates, it holds
on to its support of 200-DMA or not.
All and all, we can approach the Markets with positive
outlook with initially good opening expected. However, volatility will remain
at higher levels and just like yesterday, intermittent bouts cannot be ruled
out. Delivery based buying has emerged but it has remained very sector specific
yesterday. It needs to percolate to broader base as well to lay good foundation
for potential and successful bottom formation.
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
Your such a go for right way because your market trend guide is valuable for inverters.
ReplyDeleteKeep it up....
Regards
CapitalStars