Thursday, June 25, 2015

Daily Market Trend Guide -- Thursday, June 25, 2015

MARKET REPORT                                                                                      June 25, 2015
The Markets took a pause yesterday after eight straight days of gains as it ended the day with minor losses after coming off from its high point in the last thirty minutes of the trade. The Markets saw a flat opening and after trading very briefly in the negative in the early seconds of the trade crawled into the positive territory. The Markets went ahead to post minor gains in the morning trade and thereafter spent nearly entire session in the sideways trajectory while forming the day’s high at 8421.35 in the late afternoon trade. However, it was last thirty minutes of the trade that undid the Markets. The Markets came off sharply from that level and traded flat after paring all of its gains. It further dipped into the negative while forming the day’s low at 8338.90. It finally settled the day at 8360.85, posting a minor loss of 20.70 points or 0.25% while forming a higher top and nearly similar bottom on the Daily Bar Charts.
MARKET TREND FOR Thursday, 25 June 2015
We keep today’s analysis more or less on yesterday’s lines. Paring of gains yesterday was more technical than the Greek reason as rollovers dominated the session. The Markets are expected again to open on a flat and quiet note and look for directions. Today is the expiry day of the current derivative series and we will continue to see rollover dominated activities with some amount of volatility ingrained in it.
The levels of 8425 and 8470 are immediate resistance for the Markets. The supports come in at 8330 and 8290 levels.
The RSI—Relative Strength Index on the Daily Charts is 58.5340 and it remains neutral as it shows no bullish or bearish divergence or any failure swings. The Daily MACD continues to remain bullish as it trades above its signal line.
On the derivative front, NIFTY added net of 23.50 lakh shares in Open Interest. NIFTY witnessed 45% rollovers and Market-wide rollovers were seen at 56%.
Coming to pattern analysis, the Markets have pullback from its near term double bottom support of 7990-8010 levels and while doing so have also moved past the falling trend line and 50-DMA resistance of 8300 levels. Having said this, since the Markets have posted eight days of gains totalling to nearly 400-odd points, it would be no surprise if it consolidates briefly at this levels. With the Close hovering around its 200-DMA which is 8360, it would be perfectly natural and fine if the Markets consolidates between 8290 and 8360 range.
All and all, given the expiry day today, the Markets are likely to remain dominated with rollover centric activities. The volumes remained low yesterday but today it might remain bit higher coupled with some amount of volatility ingrained in it. With the chances of the Markets consolidating briefly at these levels, fresh positions should be taken very selectively and should be kept limited. The Markets will consolidate but resume its sustainable up move only after it moves past 8425 levels. Overall, continuation of vigilant 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
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