MARKET REPORT June
11, 2015
After seven straight day of looses, the Markets saw a smart
relief rally yesterday as it ended the day with smart gains. The Markets saw
flat opening on expected lines and soon gathered some gains in the initial trade.
In the late morning trade, the Markets gathered some more strength and kept
posting fresh gradual highs and traded sideways while maintaining those gains.
It perked up further in the last hour and half of trade as it went on to form
the day’s high of 8152.25. Though the Markets saw some minor paring of gains
from the high point of the day, it comfortably maintained its gains. It finally
ended the day at 8124.45, posting a decent gain of 102.05 points or 1.27%
forming a sharply higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, JUNE 11, 2015
Markets are expected to open today on a positive note and
are most likely to continue with their yesterdays up move. However, most
importantly, today’s session will continue to remain a crucial session because
the up move that we saw yesterday has been purely on account of short covering.
If the Markets are to capitalize on this up move, it will have to move upwards
on back of fresh buying as mere short covering will not take it far.
For today, the levels of 8190 and 8250 will act as
resistance for the Markets. The supports exists at 8050 and 8000 levels.
The RSI—Relative Strength Index on the Daily Chart is
41.5782 and it remains neutral as it shows no bullish or bearish divergence or
any failure swings. The Daily MACD remains bearish as it still continues to
trade below its signal line.
On the derivative front, the NIFTY June futures have shed
over 9.70 lakh shares or 5.92% in Open Interest. This very clearly shows that
yesterday’s up move has purely been on account of short covering from lower
levels.
Coming to pattern analysis, the Markets have, at least as of
today, taken support at its double bottom levels of 8000. It would be crucially
important for the Markets to maintain itself above this level if it has to once
again attempt a reversal. The Markets have immediate resistance at 200-DMA
levels. The levels of 100-DMA is too is declining and is set to cross 200-DMA from above in
coming sessions. If this persists, the Markets may find it self in a broad
consolidation zone waiting for a confirmed reversal.
Overall, though the Markets ended on a robust note yesterday
they are likely to continue their up move today as well; we continue to
reiterate caution in the Markets. Until the Markets reports up moves on back of
fresh buying, all purchases should be kept limited with very vigilant protection
of profits, if any, 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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