MARKET REPORT September
24, 2014
The Markets had a consolidating session once again as it
spent the entire day in a tight and narrow range and ended the day with nominal
losses. The Markets opened on a quiet note and traded briefly in the positive
territory while it formed its day’s high of 8042.05 in the early minutes of the
day. However, the Markets soon drifted in the red thereafter and then spent
most part of the session in the negative territory. A mild attempt was seen in
the late morning trade wherein the Markets recovered its losses to trade
briefly in the green but slipped again to form the day’s low of 7950.05 in the
late afternoon trade. The Markets hovered in a narrow range of 30-odd points
throughout the day and finally managed to end the day at 8002.40, posting a net
loss of 15.15 points or 0.19% while continuing to form a lower top and lower
bottom on the Daily Bar Charts.
MARKET TREND FOR THURSDAY, SEPTEMBER 25, 2014
Today, expect the Markets to open mildly on a positive note
and trade positive initially. Also, today is the expiry day of the current
derivative series and therefore the session would remain undoubtedly remain
dominated with rollover centric activities. The volatility is likely to stay
and the Markets are likely to remain in a broad trading range with no signs of
upward breakout on a significant basis.
The levels of 8040 and 8080 would act as resistance. The
supports would come in at 7950 and 7870 levels.
The RSI—Relative Strength Index on the Daily Chart is
50.7808 and it remains neutral as it shows no bullish or bearish divergence or
any failure swing. The Daily MACD remains bearish as it trades below its signal
line.
On the derivative front, rollovers continued as NIFTY
September futures shed over 20.39 lakh shares or 20.16% in Open Interest
whereas the October series added over 25.36 lakh shares or 25.84% in Open
Interest. The NIFTY PCR stands at 0.87 as against 0.89 a day before.
Taking a look at the pattern analysis, as evident from the
Charts, the Markets have chose to remain within a broadening formation which
began to develop from the Month of June. Though such pattern has a very less
frequent occurrence, the Markets still remain within this broad formation while
failing to breach the upper boundary line twice. Though the third wave in this
formation is bit extended, it still
remains within this formation.
Overall, the Markets might see some technical pullback and
trade positive initially but overall bias still remains on the possibilities of
consolidation continuing. Even with the under current remaining intact, the
Markets may witness selective sell offs and would attract buying in selective quality
non-index stocks as stock specific
sectoral out performance is likely. Overall, controlled leverage with very
selective exposure is advised.
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
