MARKET REPORT December
23, 2014
The Markets resisted for the most part of the day to its
50-DMA levels but at the end saw a sharp spurt and an ending with decent gains.
The Markets saw a positive opening on expected lines but after opening
positive, it moved in a very narrow range. It traded with capped gains in
25-odd point range for the most part of the day though it never dipped into the
negative territory. The late afternoon trade saw the Markets taking a sharp
spurt on the upside. It witnessed sudden strength coming it which gave it a
near parabolic rise. It went on to form the day’s high of 8330.95 towards the
end of the session. These levels were maintained and the Markets finally ended
the day at 8324, posting a net gain of 98.80 points or 1.20% while forming a
sharply higher top and higher bottom on the Daily Bar Charts.
MARKET TREND FOR TUESDAY, DECEMBER 23, 2014
Technically speaking, the Markets have ended the day near
its high point and it is likely to open positive and continue with its up move
at least in the initial session. However, we enter the penultimate day of
expiry of current series as Thursday remains a holiday on account of Christmas.
The session is likely to see a volatile rollover dominated movements and the levels
of 50-DMA would continue to once again act as support.
The levels of 8350 and 8390 would act as immediate
resistance for the Markets. The 50-DMA level of 8245 would act as immediate
support for the Markets at Close levels.
The RSI—Relative Strength Index on the Daily Chart is
51.4321 and it remains neutral as it shows no bullish or bearish divergence or
any failure swing. The Daily MACD continues to remain bearish while trading
below its signal line.
On the derivative front, rollovers continued as the NIFTY
December futures shed over 18.45 lakh shares or 9.32% in Open Interest. The
January Futures added over 44.54 lakh shares or 70.30% in Open Interest.
Going back to pattern analysis, the Markets have seen a
pullback of nearly 360-odd points from its intraday low on 17th of
December. However, while doing that, it has maintained its support on 100-DMA
at Close levels and have moved past its 50-DMA to Close above that. Now, in
order to continue with its up move / pullback, even if the Markets sees some
consolidation or mild profit taking, the levels of 50-DMAare expected to act as
support once again at Close levels.
Overall, though the pullback and the factors affecting it remain
intact, some amount of volatility induced by rollovers cannot be ruled out. It
may happen that the Markets witness some mild profit taking after a pullback of
360-odd points from its intraday lows and due to this some amount of volatility
may remain ingrained. However, overall no major downside is expected in the Markets.
With stock specific approach being maintained, cautious optimism is advised for
the day.
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
